Correlation Between Beijing Seeyon and Thinkon Semiconductor
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By analyzing existing cross correlation between Beijing Seeyon Internet and Thinkon Semiconductor Jinzhou, you can compare the effects of market volatilities on Beijing Seeyon and Thinkon 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 Beijing Seeyon with a short position of Thinkon Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Seeyon and Thinkon Semiconductor.
Diversification Opportunities for Beijing Seeyon and Thinkon Semiconductor
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Beijing and Thinkon is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Seeyon Internet and Thinkon Semiconductor Jinzhou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Thinkon Semiconductor and Beijing Seeyon 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 Beijing Seeyon Internet are associated (or correlated) with Thinkon Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Thinkon Semiconductor has no effect on the direction of Beijing Seeyon i.e., Beijing Seeyon and Thinkon Semiconductor go up and down completely randomly.
Pair Corralation between Beijing Seeyon and Thinkon Semiconductor
Assuming the 90 days trading horizon Beijing Seeyon Internet is expected to generate 2.12 times more return on investment than Thinkon Semiconductor. However, Beijing Seeyon is 2.12 times more volatile than Thinkon Semiconductor Jinzhou. It trades about 0.27 of its potential returns per unit of risk. Thinkon Semiconductor Jinzhou is currently generating about 0.06 per unit of risk. If you would invest 1,904 in Beijing Seeyon Internet on November 3, 2024 and sell it today you would earn a total of 460.00 from holding Beijing Seeyon Internet or generate 24.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Seeyon Internet vs. Thinkon Semiconductor Jinzhou
Performance |
| Timeline |
| Beijing Seeyon Internet |
| Thinkon Semiconductor |
Beijing Seeyon and Thinkon Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Seeyon and Thinkon Semiconductor
The main advantage of trading using opposite Beijing Seeyon and Thinkon Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Seeyon position performs unexpectedly, Thinkon 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 Thinkon Semiconductor will offset losses from the drop in Thinkon Semiconductor's long position.| Beijing Seeyon vs. Industrial Bank Co | Beijing Seeyon vs. HeNan Splendor Science | Beijing Seeyon vs. Hua Xia Bank | Beijing Seeyon vs. Hainan Haiqi Transportation |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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