Correlation Between Guangdong Jingyi and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Guangdong Jingyi Metal and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and GigaDevice SemiconductorBei.
Diversification Opportunities for Guangdong Jingyi and GigaDevice SemiconductorBei
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and GigaDevice is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.15 times more return on investment than GigaDevice SemiconductorBei. However, Guangdong Jingyi is 1.15 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.01 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.0 per unit of risk. If you would invest 769.00 in Guangdong Jingyi Metal on September 4, 2024 and sell it today you would lose (19.00) from holding Guangdong Jingyi Metal or give up 2.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| GigaDevice SemiconductorBei |
Guangdong Jingyi and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and GigaDevice SemiconductorBei
The main advantage of trading using opposite Guangdong Jingyi and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Anji Foodstuff Co | Guangdong Jingyi vs. Guilin Seamild Foods | Guangdong Jingyi vs. Tianshan Aluminum Group | Guangdong Jingyi vs. Muyuan Foodstuff Co |
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 Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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