Correlation Between Henan Shuanghui and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Henan Shuanghui Investment and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Henan Shuanghui and GigaDevice SemiconductorBei 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 Henan Shuanghui with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Henan Shuanghui and GigaDevice SemiconductorBei.
Diversification Opportunities for Henan Shuanghui and GigaDevice SemiconductorBei
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Henan and GigaDevice is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Henan Shuanghui Investment and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Henan Shuanghui 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 Henan Shuanghui Investment are associated (or correlated) with GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Henan Shuanghui i.e., Henan Shuanghui and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Henan Shuanghui and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Henan Shuanghui is expected to generate 2.34 times less return on investment than GigaDevice SemiconductorBei. But when comparing it to its historical volatility, Henan Shuanghui Investment is 2.42 times less risky than GigaDevice SemiconductorBei. It trades about 0.02 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 12,059 in GigaDevice SemiconductorBeiji on October 18, 2024 and sell it today you would earn a total of 1,227 from holding GigaDevice SemiconductorBeiji or generate 10.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Henan Shuanghui Investment vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Henan Shuanghui Inve |
| GigaDevice SemiconductorBei |
Henan Shuanghui and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Henan Shuanghui and GigaDevice SemiconductorBei
The main advantage of trading using opposite Henan Shuanghui and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Henan Shuanghui position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| Henan Shuanghui vs. Hunan TV Broadcast | Henan Shuanghui vs. Tongyu Communication | Henan Shuanghui vs. China Mobile Limited | Henan Shuanghui vs. Iat Automobile Technology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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