Correlation Between Thinkon Semiconductor and Cultural Investment
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By analyzing existing cross correlation between Thinkon Semiconductor Jinzhou and Cultural Investment Holdings, you can compare the effects of market volatilities on Thinkon Semiconductor and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkon Semiconductor and Cultural Investment.
Diversification Opportunities for Thinkon Semiconductor and Cultural Investment
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Thinkon and Cultural is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Thinkon Semiconductor Jinzhou and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of Thinkon Semiconductor i.e., Thinkon Semiconductor and Cultural Investment go up and down completely randomly.
Pair Corralation between Thinkon Semiconductor and Cultural Investment
Assuming the 90 days trading horizon Thinkon Semiconductor Jinzhou is expected to under-perform the Cultural Investment. In addition to that, Thinkon Semiconductor is 1.01 times more volatile than Cultural Investment Holdings. It trades about -0.02 of its total potential returns per unit of risk. Cultural Investment Holdings is currently generating about 0.02 per unit of volatility. If you would invest 227.00 in Cultural Investment Holdings on October 12, 2024 and sell it today you would lose (16.00) from holding Cultural Investment Holdings or give up 7.05% 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. Cultural Investment Holdings
Performance |
| Timeline |
| Thinkon Semiconductor |
| Cultural Investment |
Thinkon Semiconductor and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkon Semiconductor and Cultural Investment
The main advantage of trading using opposite Thinkon Semiconductor and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkon Semiconductor position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment's long position.The idea behind Thinkon Semiconductor Jinzhou and Cultural Investment Holdings 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 Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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