Correlation Between Gan Yuan and Southchip Semiconductor
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By analyzing existing cross correlation between Gan Yuan Foods and Southchip Semiconductor Technology, you can compare the effects of market volatilities on Gan Yuan and Southchip 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 Gan Yuan with a short position of Southchip Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and Southchip Semiconductor.
Diversification Opportunities for Gan Yuan and Southchip Semiconductor
-0.64 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gan and Southchip is -0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and Southchip Semiconductor Techno in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Southchip Semiconductor and Gan Yuan 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 Gan Yuan Foods are associated (or correlated) with Southchip Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Southchip Semiconductor has no effect on the direction of Gan Yuan i.e., Gan Yuan and Southchip Semiconductor go up and down completely randomly.
Pair Corralation between Gan Yuan and Southchip Semiconductor
Assuming the 90 days trading horizon Gan Yuan Foods is expected to generate 0.77 times more return on investment than Southchip Semiconductor. However, Gan Yuan Foods is 1.3 times less risky than Southchip Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Southchip Semiconductor Technology is currently generating about -0.02 per unit of risk. If you would invest 8,548 in Gan Yuan Foods on January 3, 2025 and sell it today you would lose (1,131) from holding Gan Yuan Foods or give up 13.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 96.01% |
| Values | Daily Returns |
Gan Yuan Foods vs. Southchip Semiconductor Techno
Performance |
| Timeline |
| Gan Yuan Foods |
| Southchip Semiconductor |
Gan Yuan and Southchip Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and Southchip Semiconductor
The main advantage of trading using opposite Gan Yuan and Southchip Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, Southchip 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 Southchip Semiconductor will offset losses from the drop in Southchip Semiconductor's long position.| Gan Yuan vs. Ping An Insurance | Gan Yuan vs. Shanghai Emperor of | Gan Yuan vs. SSAW Hotels Resorts | Gan Yuan vs. Do Fluoride Chemicals Co |
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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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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