Correlation Between Jiangxi Hengda and Giantec Semiconductor
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By analyzing existing cross correlation between Jiangxi Hengda Hi Tech and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Jiangxi Hengda and Giantec Semiconductor 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 Jiangxi Hengda with a short position of Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Hengda and Giantec Semiconductor.
Diversification Opportunities for Jiangxi Hengda and Giantec Semiconductor
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangxi and Giantec is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Hengda Hi Tech and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec Semiconductor and Jiangxi Hengda 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 Jiangxi Hengda Hi Tech are associated (or correlated) with Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Jiangxi Hengda i.e., Jiangxi Hengda and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Jiangxi Hengda and Giantec Semiconductor
Assuming the 90 days trading horizon Jiangxi Hengda Hi Tech is expected to under-perform the Giantec Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Jiangxi Hengda Hi Tech is 1.1 times less risky than Giantec Semiconductor. The stock trades about -0.09 of its potential returns per unit of risk. The Giantec Semiconductor Corp is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 5,713 in Giantec Semiconductor Corp on October 30, 2024 and sell it today you would earn a total of 1,151 from holding Giantec Semiconductor Corp or generate 20.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Hengda Hi Tech vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Jiangxi Hengda Hi |
| Giantec Semiconductor |
Jiangxi Hengda and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Hengda and Giantec Semiconductor
The main advantage of trading using opposite Jiangxi Hengda and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Hengda position performs unexpectedly, Giantec Semiconductor 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.| Jiangxi Hengda vs. Zijin Mining Group | Jiangxi Hengda vs. Wanhua Chemical Group | Jiangxi Hengda vs. Baoshan Iron Steel | Jiangxi Hengda vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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