Correlation Between Qijing Machinery and Thinkon Semiconductor
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By analyzing existing cross correlation between Qijing Machinery and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Qijing Machinery and Thinkon Semiconductor and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Qijing Machinery with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Qijing Machinery and Thinkon Semiconductor.
Diversification Opportunities for Qijing Machinery and Thinkon Semiconductor
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Qijing and Thinkon is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Qijing Machinery and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Qijing Machinery is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Qijing Machinery are associated (or correlated) with Thinkon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkon Semiconductor has no effect on the direction of Qijing Machinery i.e., Qijing Machinery and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Qijing Machinery and Thinkon Semiconductor
Assuming the 90 days trading horizon Qijing Machinery is expected to generate 1.33 times more return on investment than Thinkon Semiconductor. However, Qijing Machinery is 1.33 times more volatile than Thinkon Semiconductor Jinzhou. It trades about -0.11 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.31 per unit of risk. If you would invest 1,405 in Qijing Machinery on October 12, 2024 and sell it today you would lose (118.00) from holding Qijing Machinery or give up 8.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Qijing Machinery vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Qijing Machinery |
| Thinkon Semiconductor |
Qijing Machinery and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Qijing Machinery and Thinkon Semiconductor
The main advantage of trading using opposite Qijing Machinery and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Qijing Machinery position performs unexpectedly, Thinkon Semiconductor can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Thinkon Semiconductor will offset losses from the drop in Thinkon Semiconductor's long position.| Qijing Machinery vs. Changjiang Jinggong Steel | Qijing Machinery vs. Qiaoyin Environmental Tech | Qijing Machinery vs. Kuang Chi Technologies | Qijing Machinery vs. Jiangxi Hengda Hi Tech |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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