Correlation Between DO Home and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between DO Home Collection and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on DO Home 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 DO Home with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of DO Home and GigaDevice SemiconductorBei.
Diversification Opportunities for DO Home and GigaDevice SemiconductorBei
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between 002798 and GigaDevice is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding DO Home Collection and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and DO Home 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 DO Home Collection 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 DO Home i.e., DO Home and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between DO Home and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon DO Home Collection is expected to under-perform the GigaDevice SemiconductorBei. In addition to that, DO Home is 1.04 times more volatile than GigaDevice SemiconductorBeiji. It trades about -0.31 of its total potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.28 per unit of volatility. If you would invest 9,298 in GigaDevice SemiconductorBeiji on October 14, 2024 and sell it today you would earn a total of 2,752 from holding GigaDevice SemiconductorBeiji or generate 29.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
DO Home Collection vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| DO Home Collection |
| GigaDevice SemiconductorBei |
DO Home and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with DO Home and GigaDevice SemiconductorBei
The main advantage of trading using opposite DO Home and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DO Home 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.| DO Home vs. Gansu Jiu Steel | DO Home vs. Aofu Environmental Technology | DO Home vs. Fujian Nanwang Environment | DO Home vs. Holitech Technology 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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