Correlation Between Guizhou Chanhen and GigaDevice SemiconductorBei
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guizhou Chanhen Chemical and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Guizhou Chanhen 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 Guizhou Chanhen with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guizhou Chanhen and GigaDevice SemiconductorBei.
Diversification Opportunities for Guizhou Chanhen and GigaDevice SemiconductorBei
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guizhou and GigaDevice is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Guizhou Chanhen Chemical and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Guizhou Chanhen 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 Guizhou Chanhen Chemical 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 Guizhou Chanhen i.e., Guizhou Chanhen and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Guizhou Chanhen and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Guizhou Chanhen Chemical is expected to generate 0.92 times more return on investment than GigaDevice SemiconductorBei. However, Guizhou Chanhen Chemical is 1.08 times less risky than GigaDevice SemiconductorBei. It trades about 0.03 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.0 per unit of risk. If you would invest 1,913 in Guizhou Chanhen Chemical on August 31, 2024 and sell it today you would earn a total of 389.00 from holding Guizhou Chanhen Chemical or generate 20.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guizhou Chanhen Chemical vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Guizhou Chanhen Chemical |
| GigaDevice SemiconductorBei |
Guizhou Chanhen and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guizhou Chanhen and GigaDevice SemiconductorBei
The main advantage of trading using opposite Guizhou Chanhen and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guizhou Chanhen 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.| Guizhou Chanhen vs. Inspur Software Co | Guizhou Chanhen vs. Harbin Hatou Investment | Guizhou Chanhen vs. Hangzhou Pinming Software | Guizhou Chanhen vs. Luyin Investment Group |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Transaction History View history of all your transactions and understand their impact on performance | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk |