Correlation Between G Shank and Greatek Electronics
Can any of the company-specific risk be diversified away by investing in both G Shank and Greatek Electronics 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 G Shank and Greatek Electronics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between G Shank Enterprise Co and Greatek Electronics, you can compare the effects of market volatilities on G Shank and Greatek Electronics 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 G Shank with a short position of Greatek Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of G Shank and Greatek Electronics.
Diversification Opportunities for G Shank and Greatek Electronics
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2476 and Greatek is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding G Shank Enterprise Co and Greatek Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Greatek Electronics and G Shank 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 G Shank Enterprise Co are associated (or correlated) with Greatek Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Greatek Electronics has no effect on the direction of G Shank i.e., G Shank and Greatek Electronics go up and down completely randomly.
Pair Corralation between G Shank and Greatek Electronics
Assuming the 90 days trading horizon G Shank Enterprise Co is expected to generate 1.6 times more return on investment than Greatek Electronics. However, G Shank is 1.6 times more volatile than Greatek Electronics. It trades about 0.07 of its potential returns per unit of risk. Greatek Electronics is currently generating about 0.03 per unit of risk. If you would invest 4,589 in G Shank Enterprise Co on September 3, 2024 and sell it today you would earn a total of 4,061 from holding G Shank Enterprise Co or generate 88.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
G Shank Enterprise Co vs. Greatek Electronics
Performance |
| Timeline |
| G Shank Enterprise |
| Greatek Electronics |
G Shank and Greatek Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with G Shank and Greatek Electronics
The main advantage of trading using opposite G Shank and Greatek Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if G Shank position performs unexpectedly, Greatek Electronics 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 Greatek Electronics will offset losses from the drop in Greatek Electronics' long position.| G Shank vs. Greatek Electronics | G Shank vs. Pan Jit International | G Shank vs. Siward Crystal Technology | G Shank vs. C Sun Manufacturing |
| Greatek Electronics vs. King Yuan Electronics | Greatek Electronics vs. Powertech Technology | Greatek Electronics vs. Realtek Semiconductor Corp | Greatek Electronics vs. Elan Microelectronics 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |