Correlation Between Puya Semiconductor and Shanghai Rongtai
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By analyzing existing cross correlation between Puya Semiconductor Shanghai and Shanghai Rongtai Health, you can compare the effects of market volatilities on Puya Semiconductor and Shanghai Rongtai 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 Shanghai Rongtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puya Semiconductor and Shanghai Rongtai.
Diversification Opportunities for Puya Semiconductor and Shanghai Rongtai
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Puya and Shanghai is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Puya Semiconductor Shanghai and Shanghai Rongtai Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Rongtai Health 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 Shanghai Rongtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Rongtai Health has no effect on the direction of Puya Semiconductor i.e., Puya Semiconductor and Shanghai Rongtai go up and down completely randomly.
Pair Corralation between Puya Semiconductor and Shanghai Rongtai
Assuming the 90 days trading horizon Puya Semiconductor Shanghai is expected to generate 1.61 times more return on investment than Shanghai Rongtai. However, Puya Semiconductor is 1.61 times more volatile than Shanghai Rongtai Health. It trades about 0.02 of its potential returns per unit of risk. Shanghai Rongtai Health is currently generating about -0.02 per unit of risk. If you would invest 10,607 in Puya Semiconductor Shanghai on October 16, 2024 and sell it today you would lose (248.00) from holding Puya Semiconductor Shanghai or give up 2.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puya Semiconductor Shanghai vs. Shanghai Rongtai Health
Performance |
| Timeline |
| Puya Semiconductor |
| Shanghai Rongtai Health |
Puya Semiconductor and Shanghai Rongtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puya Semiconductor and Shanghai Rongtai
The main advantage of trading using opposite Puya Semiconductor and Shanghai Rongtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puya Semiconductor position performs unexpectedly, Shanghai Rongtai 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 Shanghai Rongtai will offset losses from the drop in Shanghai Rongtai's long position.| Puya Semiconductor vs. Guangzhou Jointas Chemical | Puya Semiconductor vs. HeBei Jinniu Chemical | Puya Semiconductor vs. Guotai Epoint Software | Puya Semiconductor vs. Jilin Chemical Fibre |
| Shanghai Rongtai vs. Hubei Geoway Investment | Shanghai Rongtai vs. Henan Shuanghui Investment | Shanghai Rongtai vs. Zhongrun Resources Investment | Shanghai Rongtai vs. Puya Semiconductor Shanghai |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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