Correlation Between Puya Semiconductor and Dazhong Transportation
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By analyzing existing cross correlation between Puya Semiconductor Shanghai and Dazhong Transportation Group, you can compare the effects of market volatilities on Puya Semiconductor and Dazhong Transportation 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 Dazhong Transportation. Check out your portfolio center. Please also check ongoing floating volatility patterns of Puya Semiconductor and Dazhong Transportation.
Diversification Opportunities for Puya Semiconductor and Dazhong Transportation
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Puya and Dazhong is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Puya Semiconductor Shanghai and Dazhong Transportation Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dazhong Transportation 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 Dazhong Transportation. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dazhong Transportation has no effect on the direction of Puya Semiconductor i.e., Puya Semiconductor and Dazhong Transportation go up and down completely randomly.
Pair Corralation between Puya Semiconductor and Dazhong Transportation
Assuming the 90 days trading horizon Puya Semiconductor Shanghai is expected to generate 1.56 times more return on investment than Dazhong Transportation. However, Puya Semiconductor is 1.56 times more volatile than Dazhong Transportation Group. It trades about 0.01 of its potential returns per unit of risk. Dazhong Transportation Group is currently generating about 0.0 per unit of risk. If you would invest 12,721 in Puya Semiconductor Shanghai on October 16, 2024 and sell it today you would lose (1,499) from holding Puya Semiconductor Shanghai or give up 11.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Puya Semiconductor Shanghai vs. Dazhong Transportation Group
Performance |
| Timeline |
| Puya Semiconductor |
| Dazhong Transportation |
Puya Semiconductor and Dazhong Transportation Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Puya Semiconductor and Dazhong Transportation
The main advantage of trading using opposite Puya Semiconductor and Dazhong Transportation positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Puya Semiconductor position performs unexpectedly, Dazhong Transportation 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 Dazhong Transportation will offset losses from the drop in Dazhong Transportation's long position.| Puya Semiconductor vs. Hubei Geoway Investment | Puya Semiconductor vs. Hunan Investment Group | Puya Semiconductor vs. Chengdu Xingrong Investment | Puya Semiconductor vs. Jointo Energy Investment |
| Dazhong Transportation vs. Puya Semiconductor Shanghai | Dazhong Transportation vs. Mingchen Health Co | Dazhong Transportation vs. PKU HealthCare Corp | Dazhong Transportation vs. Nexchip Semiconductor Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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