Correlation Between Greatek Electronics and Qisda Corp
Can any of the company-specific risk be diversified away by investing in both Greatek Electronics and Qisda 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 Greatek Electronics and Qisda Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatek Electronics and Qisda Corp, you can compare the effects of market volatilities on Greatek Electronics and Qisda 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 Greatek Electronics with a short position of Qisda Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatek Electronics and Qisda Corp.
Diversification Opportunities for Greatek Electronics and Qisda Corp
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Greatek and Qisda is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Greatek Electronics and Qisda Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qisda Corp and Greatek Electronics 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 Greatek Electronics are associated (or correlated) with Qisda Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qisda Corp has no effect on the direction of Greatek Electronics i.e., Greatek Electronics and Qisda Corp go up and down completely randomly.
Pair Corralation between Greatek Electronics and Qisda Corp
Assuming the 90 days trading horizon Greatek Electronics is expected to under-perform the Qisda Corp. But the stock apears to be less risky and, when comparing its historical volatility, Greatek Electronics is 1.05 times less risky than Qisda Corp. The stock trades about -0.08 of its potential returns per unit of risk. The Qisda Corp is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 3,680 in Qisda Corp on August 29, 2024 and sell it today you would earn a total of 100.00 from holding Qisda Corp or generate 2.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Greatek Electronics vs. Qisda Corp
Performance |
| Timeline |
| Greatek Electronics |
| Qisda Corp |
Greatek Electronics and Qisda Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatek Electronics and Qisda Corp
The main advantage of trading using opposite Greatek Electronics and Qisda Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatek Electronics position performs unexpectedly, Qisda 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 Qisda Corp will offset losses from the drop in Qisda Corp's long position.| Greatek Electronics vs. Novatek Microelectronics Corp | Greatek Electronics vs. Sitronix Technology Corp | Greatek Electronics vs. Elan Microelectronics Corp | Greatek Electronics vs. Global Unichip Corp |
| Qisda Corp vs. Novatek Microelectronics Corp | Qisda Corp vs. Sitronix Technology Corp | Qisda Corp vs. Elan Microelectronics Corp | Qisda Corp vs. Global Unichip Corp |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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