Correlation Between Lepu Medical and Giantec Semiconductor
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By analyzing existing cross correlation between Lepu Medical Tech and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Lepu Medical and Giantec Semiconductor 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 Lepu Medical with a short position of Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepu Medical and Giantec Semiconductor.
Diversification Opportunities for Lepu Medical and Giantec Semiconductor
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Lepu and Giantec is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Lepu Medical Tech and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec Semiconductor and Lepu Medical 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 Lepu Medical Tech are associated (or correlated) with Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Lepu Medical i.e., Lepu Medical and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Lepu Medical and Giantec Semiconductor
Assuming the 90 days trading horizon Lepu Medical Tech is expected to under-perform the Giantec Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Lepu Medical Tech is 3.32 times less risky than Giantec Semiconductor. The stock trades about -0.28 of its potential returns per unit of risk. The Giantec Semiconductor Corp is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 5,852 in Giantec Semiconductor Corp on November 1, 2024 and sell it today you would earn a total of 1,012 from holding Giantec Semiconductor Corp or generate 17.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lepu Medical Tech vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Lepu Medical Tech |
| Giantec Semiconductor |
Lepu Medical and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lepu Medical and Giantec Semiconductor
The main advantage of trading using opposite Lepu Medical and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepu Medical position performs unexpectedly, Giantec Semiconductor 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.| Lepu Medical vs. Guangzhou Dongfang Hotel | Lepu Medical vs. Huatian Hotel Group | Lepu Medical vs. Tongyu Communication | Lepu Medical vs. Heilongjiang Transport Development |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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