Correlation Between Tianjin Silvery and Thinkon Semiconductor
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By analyzing existing cross correlation between Tianjin Silvery Dragon and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Tianjin Silvery 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 Tianjin Silvery with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Silvery and Thinkon Semiconductor.
Diversification Opportunities for Tianjin Silvery and Thinkon Semiconductor
0.1 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tianjin and Thinkon is 0.1. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Silvery Dragon and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Tianjin Silvery 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 Tianjin Silvery Dragon 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 Tianjin Silvery i.e., Tianjin Silvery and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Tianjin Silvery and Thinkon Semiconductor
Assuming the 90 days trading horizon Tianjin Silvery Dragon is expected to under-perform the Thinkon Semiconductor. In addition to that, Tianjin Silvery is 1.46 times more volatile than Thinkon Semiconductor Jinzhou. It trades about -0.24 of its total potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about -0.25 per unit of volatility. If you would invest 2,506 in Thinkon Semiconductor Jinzhou on October 16, 2024 and sell it today you would lose (327.00) from holding Thinkon Semiconductor Jinzhou or give up 13.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Silvery Dragon vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Tianjin Silvery Dragon |
| Thinkon Semiconductor |
Tianjin Silvery and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Silvery and Thinkon Semiconductor
The main advantage of trading using opposite Tianjin Silvery and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Silvery 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.| Tianjin Silvery vs. Keeson Technology Corp | Tianjin Silvery vs. Soyea Technology Co | Tianjin Silvery vs. Linewell Software Co | Tianjin Silvery vs. Digiwin Software Co |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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