Correlation Between Clevo and Gigastorage Corp
Can any of the company-specific risk be diversified away by investing in both Clevo and Gigastorage Corp at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Clevo and Gigastorage Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Clevo Co and Gigastorage Corp, you can compare the effects of market volatilities on Clevo and Gigastorage Corp 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 Clevo with a short position of Gigastorage Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Clevo and Gigastorage Corp.
Diversification Opportunities for Clevo and Gigastorage Corp
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Clevo and Gigastorage is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Clevo Co and Gigastorage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigastorage Corp and Clevo 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 Clevo Co are associated (or correlated) with Gigastorage Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigastorage Corp has no effect on the direction of Clevo i.e., Clevo and Gigastorage Corp go up and down completely randomly.
Pair Corralation between Clevo and Gigastorage Corp
Assuming the 90 days trading horizon Clevo Co is expected to under-perform the Gigastorage Corp. In addition to that, Clevo is 1.24 times more volatile than Gigastorage Corp. It trades about -0.09 of its total potential returns per unit of risk. Gigastorage Corp is currently generating about 0.46 per unit of volatility. If you would invest 1,335 in Gigastorage Corp on November 28, 2024 and sell it today you would earn a total of 205.00 from holding Gigastorage Corp or generate 15.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Clevo Co vs. Gigastorage Corp
Performance |
| Timeline |
| Clevo |
| Gigastorage Corp |
Clevo and Gigastorage Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Clevo and Gigastorage Corp
The main advantage of trading using opposite Clevo and Gigastorage Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Clevo position performs unexpectedly, Gigastorage Corp 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 Gigastorage Corp will offset losses from the drop in Gigastorage Corp's long position.| Clevo vs. Inventec Corp | Clevo vs. Compal Electronics | Clevo vs. Cheng Uei Precision | Clevo vs. Pan International Industrial Corp |
| Gigastorage Corp vs. Tainet Communication System | Gigastorage Corp vs. PChome Online | Gigastorage Corp vs. STL Technology Co | Gigastorage Corp vs. Simplo 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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