Correlation Between Yingde Greatchem and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Yingde Greatchem Chemicals and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Yingde Greatchem and GigaDevice SemiconductorBei 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 Yingde Greatchem with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yingde Greatchem and GigaDevice SemiconductorBei.
Diversification Opportunities for Yingde Greatchem and GigaDevice SemiconductorBei
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Yingde and GigaDevice is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Yingde Greatchem Chemicals and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Yingde Greatchem 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 Yingde Greatchem Chemicals are associated (or correlated) with GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Yingde Greatchem i.e., Yingde Greatchem and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Yingde Greatchem and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Yingde Greatchem Chemicals is expected to generate 1.04 times more return on investment than GigaDevice SemiconductorBei. However, Yingde Greatchem is 1.04 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.04 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about -0.3 per unit of risk. If you would invest 2,558 in Yingde Greatchem Chemicals on September 13, 2024 and sell it today you would earn a total of 39.00 from holding Yingde Greatchem Chemicals or generate 1.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yingde Greatchem Chemicals vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Yingde Greatchem Che |
| GigaDevice SemiconductorBei |
Yingde Greatchem and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yingde Greatchem and GigaDevice SemiconductorBei
The main advantage of trading using opposite Yingde Greatchem and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yingde Greatchem position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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