Correlation Between Chengdu Xinzhu and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Chengdu Xinzhu RoadBridge and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Chengdu Xinzhu 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 Chengdu Xinzhu with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xinzhu and GigaDevice SemiconductorBei.
Diversification Opportunities for Chengdu Xinzhu and GigaDevice SemiconductorBei
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and GigaDevice is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xinzhu RoadBridge and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Chengdu Xinzhu 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 Chengdu Xinzhu RoadBridge 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 Chengdu Xinzhu i.e., Chengdu Xinzhu and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Chengdu Xinzhu and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Chengdu Xinzhu is expected to generate 5.36 times less return on investment than GigaDevice SemiconductorBei. In addition to that, Chengdu Xinzhu is 1.15 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.06 of its total potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.34 per unit of volatility. If you would invest 8,322 in GigaDevice SemiconductorBeiji on September 27, 2024 and sell it today you would earn a total of 2,654 from holding GigaDevice SemiconductorBeiji or generate 31.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xinzhu RoadBridge vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Chengdu Xinzhu RoadBridge |
| GigaDevice SemiconductorBei |
Chengdu Xinzhu and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xinzhu and GigaDevice SemiconductorBei
The main advantage of trading using opposite Chengdu Xinzhu and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xinzhu 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.| Chengdu Xinzhu vs. Industrial and Commercial | Chengdu Xinzhu vs. Agricultural Bank of | Chengdu Xinzhu vs. China Construction Bank | Chengdu Xinzhu vs. Bank of China |
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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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