Correlation Between Thinkon Semiconductor and Fibocom Wireless
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By analyzing existing cross correlation between Thinkon Semiconductor Jinzhou and Fibocom Wireless, you can compare the effects of market volatilities on Thinkon Semiconductor and Fibocom Wireless 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 Fibocom Wireless. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkon Semiconductor and Fibocom Wireless.
Diversification Opportunities for Thinkon Semiconductor and Fibocom Wireless
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thinkon and Fibocom is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Thinkon Semiconductor Jinzhou and Fibocom Wireless in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fibocom Wireless 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 Fibocom Wireless. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fibocom Wireless has no effect on the direction of Thinkon Semiconductor i.e., Thinkon Semiconductor and Fibocom Wireless go up and down completely randomly.
Pair Corralation between Thinkon Semiconductor and Fibocom Wireless
Assuming the 90 days trading horizon Thinkon Semiconductor is expected to generate 2.45 times less return on investment than Fibocom Wireless. But when comparing it to its historical volatility, Thinkon Semiconductor Jinzhou is 1.04 times less risky than Fibocom Wireless. It trades about 0.04 of its potential returns per unit of risk. Fibocom Wireless is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 1,281 in Fibocom Wireless on October 29, 2024 and sell it today you would earn a total of 1,754 from holding Fibocom Wireless or generate 136.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkon Semiconductor Jinzhou vs. Fibocom Wireless
Performance |
| Timeline |
| Thinkon Semiconductor |
| Fibocom Wireless |
Thinkon Semiconductor and Fibocom Wireless Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkon Semiconductor and Fibocom Wireless
The main advantage of trading using opposite Thinkon Semiconductor and Fibocom Wireless positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkon Semiconductor position performs unexpectedly, Fibocom Wireless 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 Fibocom Wireless will offset losses from the drop in Fibocom Wireless' long position.The idea behind Thinkon Semiconductor Jinzhou and Fibocom Wireless 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.
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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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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