Correlation Between GRG Banking and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between GRG Banking Equipment and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on GRG Banking 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 GRG Banking with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of GRG Banking and GigaDevice SemiconductorBei.
Diversification Opportunities for GRG Banking and GigaDevice SemiconductorBei
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between GRG and GigaDevice is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding GRG Banking Equipment and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and GRG Banking 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 GRG Banking Equipment 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 GRG Banking i.e., GRG Banking and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between GRG Banking and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon GRG Banking Equipment is expected to generate 0.76 times more return on investment than GigaDevice SemiconductorBei. However, GRG Banking Equipment is 1.32 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 0.01 per unit of risk. If you would invest 980.00 in GRG Banking Equipment on October 11, 2024 and sell it today you would earn a total of 95.00 from holding GRG Banking Equipment or generate 9.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GRG Banking Equipment vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| GRG Banking Equipment |
| GigaDevice SemiconductorBei |
GRG Banking and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GRG Banking and GigaDevice SemiconductorBei
The main advantage of trading using opposite GRG Banking and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GRG Banking 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.| GRG Banking vs. Jiangsu Yueda Investment | GRG Banking vs. Shenzhen Clou Electronics | GRG Banking vs. Hangzhou Arcvideo Technology | GRG Banking vs. Beijing YanDong MicroElectronic |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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