Correlation Between Thinkon Semiconductor and Ingenic Semiconductor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Thinkon Semiconductor Jinzhou and Ingenic Semiconductor, you can compare the effects of market volatilities on Thinkon Semiconductor and Ingenic 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 Thinkon Semiconductor with a short position of Ingenic Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkon Semiconductor and Ingenic Semiconductor.
Diversification Opportunities for Thinkon Semiconductor and Ingenic Semiconductor
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thinkon and Ingenic is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding Thinkon Semiconductor Jinzhou and Ingenic Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ingenic Semiconductor 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 Ingenic Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ingenic Semiconductor has no effect on the direction of Thinkon Semiconductor i.e., Thinkon Semiconductor and Ingenic Semiconductor go up and down completely randomly.
Pair Corralation between Thinkon Semiconductor and Ingenic Semiconductor
Assuming the 90 days trading horizon Thinkon Semiconductor Jinzhou is expected to under-perform the Ingenic Semiconductor. In addition to that, Thinkon Semiconductor is 1.18 times more volatile than Ingenic Semiconductor. It trades about -0.02 of its total potential returns per unit of risk. Ingenic Semiconductor is currently generating about 0.0 per unit of volatility. If you would invest 7,937 in Ingenic Semiconductor on October 12, 2024 and sell it today you would lose (1,676) from holding Ingenic Semiconductor or give up 21.12% 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. Ingenic Semiconductor
Performance |
| Timeline |
| Thinkon Semiconductor |
| Ingenic Semiconductor |
Thinkon Semiconductor and Ingenic Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkon Semiconductor and Ingenic Semiconductor
The main advantage of trading using opposite Thinkon Semiconductor and Ingenic Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkon Semiconductor position performs unexpectedly, Ingenic 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 Ingenic Semiconductor will offset losses from the drop in Ingenic Semiconductor's long position.The idea behind Thinkon Semiconductor Jinzhou and Ingenic Semiconductor 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.
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |