Correlation Between China Express and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between China Express Airlines and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on China Express 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 China Express with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Express and GigaDevice SemiconductorBei.
Diversification Opportunities for China Express and GigaDevice SemiconductorBei
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and GigaDevice is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Express Airlines and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and China Express 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 China Express Airlines 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 China Express i.e., China Express and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between China Express and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon China Express Airlines is expected to under-perform the GigaDevice SemiconductorBei. But the stock apears to be less risky and, when comparing its historical volatility, China Express Airlines is 1.15 times less risky than GigaDevice SemiconductorBei. The stock trades about -0.03 of its potential returns per unit of risk. The GigaDevice SemiconductorBeiji is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 9,956 in GigaDevice SemiconductorBeiji on August 28, 2024 and sell it today you would lose (1,565) from holding GigaDevice SemiconductorBeiji or give up 15.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Express Airlines vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| China Express Airlines |
| GigaDevice SemiconductorBei |
China Express and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Express and GigaDevice SemiconductorBei
The main advantage of trading using opposite China Express and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Express 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.| China Express vs. Anhui Transport Consulting | China Express vs. China Sports Industry | China Express vs. Innovative Medical Management | China Express vs. Shandong Sanyuan Biotechnology |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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