Correlation Between Chaintech Technology and Gordon Auto
Can any of the company-specific risk be diversified away by investing in both Chaintech Technology and Gordon Auto 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 Chaintech Technology and Gordon Auto into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chaintech Technology Corp and Gordon Auto Body, you can compare the effects of market volatilities on Chaintech Technology and Gordon Auto 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 Chaintech Technology with a short position of Gordon Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chaintech Technology and Gordon Auto.
Diversification Opportunities for Chaintech Technology and Gordon Auto
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chaintech and Gordon is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Chaintech Technology Corp and Gordon Auto Body in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gordon Auto Body and Chaintech Technology 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 Chaintech Technology Corp are associated (or correlated) with Gordon Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gordon Auto Body has no effect on the direction of Chaintech Technology i.e., Chaintech Technology and Gordon Auto go up and down completely randomly.
Pair Corralation between Chaintech Technology and Gordon Auto
Assuming the 90 days trading horizon Chaintech Technology Corp is expected to generate 0.98 times more return on investment than Gordon Auto. However, Chaintech Technology Corp is 1.02 times less risky than Gordon Auto. It trades about 0.01 of its potential returns per unit of risk. Gordon Auto Body is currently generating about -0.21 per unit of risk. If you would invest 3,595 in Chaintech Technology Corp on January 19, 2025 and sell it today you would lose (50.00) from holding Chaintech Technology Corp or give up 1.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chaintech Technology Corp vs. Gordon Auto Body
Performance |
| Timeline |
| Chaintech Technology Corp |
| Gordon Auto Body |
Chaintech Technology and Gordon Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chaintech Technology and Gordon Auto
The main advantage of trading using opposite Chaintech Technology and Gordon Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chaintech Technology position performs unexpectedly, Gordon Auto 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 Gordon Auto will offset losses from the drop in Gordon Auto's long position.| Chaintech Technology vs. Biostar Microtech International | Chaintech Technology vs. Elitegroup Computer Systems | Chaintech Technology vs. Shuttle | Chaintech Technology vs. Gigabyte Technology Co |
| Gordon Auto vs. Kaulin Mfg | Gordon Auto vs. Tex Ray Industrial Co | Gordon Auto vs. De Licacy Industrial | Gordon Auto vs. Kwong Fong Industries |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |