Correlation Between Fujian Newland and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Fujian Newland Computer and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Fujian Newland 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 Fujian Newland with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Fujian Newland and GigaDevice SemiconductorBei.
Diversification Opportunities for Fujian Newland and GigaDevice SemiconductorBei
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Fujian and GigaDevice is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Fujian Newland Computer and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Fujian Newland 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 Fujian Newland Computer 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 Fujian Newland i.e., Fujian Newland and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Fujian Newland and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Fujian Newland Computer is expected to generate 1.64 times more return on investment than GigaDevice SemiconductorBei. However, Fujian Newland is 1.64 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.2 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about -0.09 per unit of risk. If you would invest 1,847 in Fujian Newland Computer on September 3, 2024 and sell it today you would earn a total of 290.00 from holding Fujian Newland Computer or generate 15.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Fujian Newland Computer vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Fujian Newland Computer |
| GigaDevice SemiconductorBei |
Fujian Newland and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Fujian Newland and GigaDevice SemiconductorBei
The main advantage of trading using opposite Fujian Newland and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Fujian Newland 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.| Fujian Newland vs. Haima Automobile Group | Fujian Newland vs. Nancal Energy Saving Tech | Fujian Newland vs. Panda Financial Holding | Fujian Newland vs. Ping An Insurance |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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