Correlation Between Puya Semiconductor and Zhonghong Pulin
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By analyzing existing cross correlation between Puya Semiconductor Shanghai and Zhonghong Pulin Medical, you can compare the effects of market volatilities on Puya Semiconductor and Zhonghong Pulin 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 Puya Semiconductor with a short position of Zhonghong Pulin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puya Semiconductor and Zhonghong Pulin.
Diversification Opportunities for Puya Semiconductor and Zhonghong Pulin
-0.34 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puya and Zhonghong is -0.34. Overlapping area represents the amount of risk that can be diversified away by holding Puya Semiconductor Shanghai and Zhonghong Pulin Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghong Pulin Medical and Puya 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 Puya Semiconductor Shanghai are associated (or correlated) with Zhonghong Pulin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghong Pulin Medical has no effect on the direction of Puya Semiconductor i.e., Puya Semiconductor and Zhonghong Pulin go up and down completely randomly.
Pair Corralation between Puya Semiconductor and Zhonghong Pulin
Assuming the 90 days trading horizon Puya Semiconductor Shanghai is expected to generate 1.28 times more return on investment than Zhonghong Pulin. However, Puya Semiconductor is 1.28 times more volatile than Zhonghong Pulin Medical. It trades about 0.11 of its potential returns per unit of risk. Zhonghong Pulin Medical is currently generating about 0.08 per unit of risk. If you would invest 6,633 in Puya Semiconductor Shanghai on November 3, 2024 and sell it today you would earn a total of 4,196 from holding Puya Semiconductor Shanghai or generate 63.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puya Semiconductor Shanghai vs. Zhonghong Pulin Medical
Performance |
| Timeline |
| Puya Semiconductor |
| Zhonghong Pulin Medical |
Puya Semiconductor and Zhonghong Pulin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puya Semiconductor and Zhonghong Pulin
The main advantage of trading using opposite Puya Semiconductor and Zhonghong Pulin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puya Semiconductor position performs unexpectedly, Zhonghong Pulin 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 Zhonghong Pulin will offset losses from the drop in Zhonghong Pulin's long position.| Puya Semiconductor vs. Jiangsu Phoenix Publishing | Puya Semiconductor vs. Fujian Longzhou Transportation | Puya Semiconductor vs. Lander Sports Development | Puya Semiconductor vs. Shandong Publishing Media |
| Zhonghong Pulin vs. PetroChina Co Ltd | Zhonghong Pulin vs. China Railway Construction | Zhonghong Pulin vs. China Mobile Limited | Zhonghong Pulin vs. Industrial and Commercial |
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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