Correlation Between Greatek Electronics and Space Shuttle
Can any of the company-specific risk be diversified away by investing in both Greatek Electronics and Space Shuttle 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 Space Shuttle into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Greatek Electronics and Space Shuttle Hi Tech, you can compare the effects of market volatilities on Greatek Electronics and Space Shuttle 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 Space Shuttle. Check out your portfolio center. Please also check ongoing floating volatility patterns of Greatek Electronics and Space Shuttle.
Diversification Opportunities for Greatek Electronics and Space Shuttle
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Greatek and Space is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Greatek Electronics and Space Shuttle Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Space Shuttle Hi 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 Space Shuttle. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Space Shuttle Hi has no effect on the direction of Greatek Electronics i.e., Greatek Electronics and Space Shuttle go up and down completely randomly.
Pair Corralation between Greatek Electronics and Space Shuttle
Assuming the 90 days trading horizon Greatek Electronics is expected to generate 0.55 times more return on investment than Space Shuttle. However, Greatek Electronics is 1.81 times less risky than Space Shuttle. It trades about -0.04 of its potential returns per unit of risk. Space Shuttle Hi Tech is currently generating about -0.06 per unit of risk. If you would invest 6,270 in Greatek Electronics on September 3, 2024 and sell it today you would lose (480.00) from holding Greatek Electronics or give up 7.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Greatek Electronics vs. Space Shuttle Hi Tech
Performance |
| Timeline |
| Greatek Electronics |
| Space Shuttle Hi |
Greatek Electronics and Space Shuttle Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Greatek Electronics and Space Shuttle
The main advantage of trading using opposite Greatek Electronics and Space Shuttle positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Greatek Electronics position performs unexpectedly, Space Shuttle 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 Space Shuttle will offset losses from the drop in Space Shuttle's long position.| Greatek Electronics vs. King Yuan Electronics | Greatek Electronics vs. Powertech Technology | Greatek Electronics vs. Realtek Semiconductor Corp | Greatek Electronics vs. Elan Microelectronics Corp |
| Space Shuttle vs. Universal Microelectronics Co | Space Shuttle vs. AVerMedia Technologies | Space Shuttle vs. Symtek Automation Asia | Space Shuttle 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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |