Correlation Between Guangdong Brandmax and StarPower Semiconductor
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By analyzing existing cross correlation between Guangdong Brandmax Marketing and StarPower Semiconductor, you can compare the effects of market volatilities on Guangdong Brandmax and StarPower 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 Guangdong Brandmax with a short position of StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Brandmax and StarPower Semiconductor.
Diversification Opportunities for Guangdong Brandmax and StarPower Semiconductor
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangdong and StarPower is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Brandmax Marketing and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor and Guangdong Brandmax 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 Guangdong Brandmax Marketing are associated (or correlated) with StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Guangdong Brandmax i.e., Guangdong Brandmax and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Guangdong Brandmax and StarPower Semiconductor
Assuming the 90 days trading horizon Guangdong Brandmax Marketing is expected to generate 1.41 times more return on investment than StarPower Semiconductor. However, Guangdong Brandmax is 1.41 times more volatile than StarPower Semiconductor. It trades about 0.05 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.04 per unit of risk. If you would invest 740.00 in Guangdong Brandmax Marketing on January 29, 2025 and sell it today you would earn a total of 284.00 from holding Guangdong Brandmax Marketing or generate 38.38% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Brandmax Marketing vs. StarPower Semiconductor
Performance |
| Timeline |
| Guangdong Brandmax |
| StarPower Semiconductor |
Guangdong Brandmax and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Brandmax and StarPower Semiconductor
The main advantage of trading using opposite Guangdong Brandmax and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Brandmax position performs unexpectedly, StarPower 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Guangdong Brandmax vs. Yonghui Superstores Co | Guangdong Brandmax vs. Xilong Chemical Co | Guangdong Brandmax vs. Ningbo Bohui Chemical | Guangdong Brandmax vs. Yindu Kitchen Equipment |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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