Correlation Between Thinkon Semiconductor and Beijing Mainstreets
Specify exactly 2 symbols:
By analyzing existing cross correlation between Thinkon Semiconductor Jinzhou and Beijing Mainstreets Investment, you can compare the effects of market volatilities on Thinkon Semiconductor and Beijing Mainstreets 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 Thinkon Semiconductor with a short position of Beijing Mainstreets. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkon Semiconductor and Beijing Mainstreets.
Diversification Opportunities for Thinkon Semiconductor and Beijing Mainstreets
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thinkon and Beijing is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Thinkon Semiconductor Jinzhou and Beijing Mainstreets Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Mainstreets and Thinkon Semiconductor 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 Thinkon Semiconductor Jinzhou are associated (or correlated) with Beijing Mainstreets. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Mainstreets has no effect on the direction of Thinkon Semiconductor i.e., Thinkon Semiconductor and Beijing Mainstreets go up and down completely randomly.
Pair Corralation between Thinkon Semiconductor and Beijing Mainstreets
Assuming the 90 days trading horizon Thinkon Semiconductor Jinzhou is expected to under-perform the Beijing Mainstreets. But the stock apears to be less risky and, when comparing its historical volatility, Thinkon Semiconductor Jinzhou is 1.54 times less risky than Beijing Mainstreets. The stock trades about -0.31 of its potential returns per unit of risk. The Beijing Mainstreets Investment is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Beijing Mainstreets Investment on October 12, 2024 and sell it today you would lose (6.00) from holding Beijing Mainstreets Investment or give up 2.4% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkon Semiconductor Jinzhou vs. Beijing Mainstreets Investment
Performance |
| Timeline |
| Thinkon Semiconductor |
| Beijing Mainstreets |
Thinkon Semiconductor and Beijing Mainstreets Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkon Semiconductor and Beijing Mainstreets
The main advantage of trading using opposite Thinkon Semiconductor and Beijing Mainstreets positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkon Semiconductor position performs unexpectedly, Beijing Mainstreets 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 Beijing Mainstreets will offset losses from the drop in Beijing Mainstreets' long position.The idea behind Thinkon Semiconductor Jinzhou and Beijing Mainstreets Investment pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Beijing Mainstreets vs. Maoming Petro Chemical Shihua | Beijing Mainstreets vs. Dhc Software Co | Beijing Mainstreets vs. Sharetronic Data Technology | Beijing Mainstreets vs. HUAQIN TECHNOLOGY LTD |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |