Correlation Between Gigastorage Corp and BenQ Materials
Can any of the company-specific risk be diversified away by investing in both Gigastorage Corp and BenQ Materials 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 BenQ Materials into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Gigastorage Corp and BenQ Materials Corp, you can compare the effects of market volatilities on Gigastorage Corp and BenQ Materials 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 BenQ Materials. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gigastorage Corp and BenQ Materials.
Diversification Opportunities for Gigastorage Corp and BenQ Materials
-0.75 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gigastorage and BenQ is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding Gigastorage Corp and BenQ Materials Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BenQ Materials Corp 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 BenQ Materials. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BenQ Materials Corp has no effect on the direction of Gigastorage Corp i.e., Gigastorage Corp and BenQ Materials go up and down completely randomly.
Pair Corralation between Gigastorage Corp and BenQ Materials
Assuming the 90 days trading horizon Gigastorage Corp is expected to under-perform the BenQ Materials. In addition to that, Gigastorage Corp is 1.19 times more volatile than BenQ Materials Corp. It trades about -0.21 of its total potential returns per unit of risk. BenQ Materials Corp is currently generating about -0.15 per unit of volatility. If you would invest 3,450 in BenQ Materials Corp on September 12, 2024 and sell it today you would lose (215.00) from holding BenQ Materials Corp or give up 6.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gigastorage Corp vs. BenQ Materials Corp
Performance |
| Timeline |
| Gigastorage Corp |
| BenQ Materials Corp |
Gigastorage Corp and BenQ Materials Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gigastorage Corp and BenQ Materials
The main advantage of trading using opposite Gigastorage Corp and BenQ Materials positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gigastorage Corp position performs unexpectedly, BenQ Materials 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 BenQ Materials will offset losses from the drop in BenQ Materials' long position.| Gigastorage Corp vs. AU Optronics | Gigastorage Corp vs. Innolux Corp | Gigastorage Corp vs. Ruentex Development Co | Gigastorage Corp vs. WiseChip Semiconductor |
| BenQ Materials vs. AU Optronics | BenQ Materials vs. Innolux Corp | BenQ Materials vs. Ruentex Development Co | BenQ Materials vs. WiseChip Semiconductor |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |