Correlation Between Gigastorage Corp and Chia Yi
Can any of the company-specific risk be diversified away by investing in both Gigastorage Corp and Chia Yi 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 Gigastorage Corp and Chia Yi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigastorage Corp and Chia Yi Steel, you can compare the effects of market volatilities on Gigastorage Corp and Chia Yi 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 Gigastorage Corp with a short position of Chia Yi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigastorage Corp and Chia Yi.
Diversification Opportunities for Gigastorage Corp and Chia Yi
-0.38 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Gigastorage and Chia is -0.38. Overlapping area represents the amount of risk that can be diversified away by holding Gigastorage Corp and Chia Yi Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chia Yi Steel and Gigastorage Corp 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 Gigastorage Corp are associated (or correlated) with Chia Yi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chia Yi Steel has no effect on the direction of Gigastorage Corp i.e., Gigastorage Corp and Chia Yi go up and down completely randomly.
Pair Corralation between Gigastorage Corp and Chia Yi
Assuming the 90 days trading horizon Gigastorage Corp is expected to under-perform the Chia Yi. But the stock apears to be less risky and, when comparing its historical volatility, Gigastorage Corp is 1.22 times less risky than Chia Yi. The stock trades about 0.0 of its potential returns per unit of risk. The Chia Yi Steel is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 1,120 in Chia Yi Steel on August 27, 2024 and sell it today you would lose (25.00) from holding Chia Yi Steel or give up 2.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Gigastorage Corp vs. Chia Yi Steel
Performance |
| Timeline |
| Gigastorage Corp |
| Chia Yi Steel |
Gigastorage Corp and Chia Yi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigastorage Corp and Chia Yi
The main advantage of trading using opposite Gigastorage Corp and Chia Yi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigastorage Corp position performs unexpectedly, Chia Yi 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 Chia Yi will offset losses from the drop in Chia Yi's long position.| Gigastorage Corp vs. Loop Telecommunication International | Gigastorage Corp vs. U Media Communications | Gigastorage Corp vs. Sunfar Computer Co | Gigastorage Corp vs. Silicon Power Computer |
| Chia Yi vs. International CSRC Investment | Chia Yi vs. Simplo Technology Co | Chia Yi vs. Gigastorage Corp | Chia Yi vs. Yuan High Tech Development |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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