Correlation Between Thinkon Semiconductor and Puya Semiconductor
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By analyzing existing cross correlation between Thinkon Semiconductor Jinzhou and Puya Semiconductor Shanghai, you can compare the effects of market volatilities on Thinkon Semiconductor and Puya 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 Puya Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Thinkon Semiconductor and Puya Semiconductor.
Diversification Opportunities for Thinkon Semiconductor and Puya Semiconductor
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Thinkon and Puya is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Thinkon Semiconductor Jinzhou and Puya Semiconductor Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Puya 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 Puya Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Puya Semiconductor has no effect on the direction of Thinkon Semiconductor i.e., Thinkon Semiconductor and Puya Semiconductor go up and down completely randomly.
Pair Corralation between Thinkon Semiconductor and Puya Semiconductor
Assuming the 90 days trading horizon Thinkon Semiconductor is expected to generate 2.12 times less return on investment than Puya Semiconductor. But when comparing it to its historical volatility, Thinkon Semiconductor Jinzhou is 2.65 times less risky than Puya Semiconductor. It trades about 0.24 of its potential returns per unit of risk. Puya Semiconductor Shanghai is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 9,361 in Puya Semiconductor Shanghai on November 7, 2024 and sell it today you would earn a total of 1,468 from holding Puya Semiconductor Shanghai or generate 15.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Thinkon Semiconductor Jinzhou vs. Puya Semiconductor Shanghai
Performance |
| Timeline |
| Thinkon Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Puya Semiconductor |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
OK
Thinkon Semiconductor and Puya Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Thinkon Semiconductor and Puya Semiconductor
The main advantage of trading using opposite Thinkon Semiconductor and Puya Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Thinkon Semiconductor position performs unexpectedly, Puya 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 Puya Semiconductor will offset losses from the drop in Puya Semiconductor's long position.The idea behind Thinkon Semiconductor Jinzhou and Puya Semiconductor Shanghai 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 Stocks Directory module to find actively traded stocks across global markets.
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