Correlation Between Hengli Industrial and Giantec Semiconductor
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By analyzing existing cross correlation between Hengli Industrial Development and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Hengli Industrial and Giantec 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 Hengli Industrial with a short position of Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hengli Industrial and Giantec Semiconductor.
Diversification Opportunities for Hengli Industrial and Giantec Semiconductor
0.06 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hengli and Giantec is 0.06. Overlapping area represents the amount of risk that can be diversified away by holding Hengli Industrial Development and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec Semiconductor and Hengli Industrial 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 Hengli Industrial Development are associated (or correlated) with Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Hengli Industrial i.e., Hengli Industrial and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Hengli Industrial and Giantec Semiconductor
Assuming the 90 days trading horizon Hengli Industrial is expected to generate 1.06 times less return on investment than Giantec Semiconductor. But when comparing it to its historical volatility, Hengli Industrial Development is 2.02 times less risky than Giantec Semiconductor. It trades about 0.35 of its potential returns per unit of risk. Giantec Semiconductor Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 6,329 in Giantec Semiconductor Corp on October 28, 2024 and sell it today you would earn a total of 1,137 from holding Giantec Semiconductor Corp or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hengli Industrial Development vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Hengli Industrial |
| Giantec Semiconductor |
Hengli Industrial and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hengli Industrial and Giantec Semiconductor
The main advantage of trading using opposite Hengli Industrial and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hengli Industrial position performs unexpectedly, Giantec 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.| Hengli Industrial vs. Kidswant Children Products | Hengli Industrial vs. Fujian Wanchen Biotechnology | Hengli Industrial vs. Beingmate Baby Child | Hengli Industrial vs. Anhui Huaheng Biotechnology |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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