Correlation Between Ningbo Fangzheng and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Ningbo Fangzheng Automobile and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Ningbo Fangzheng 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 Ningbo Fangzheng with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ningbo Fangzheng and GigaDevice SemiconductorBei.
Diversification Opportunities for Ningbo Fangzheng and GigaDevice SemiconductorBei
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Ningbo and GigaDevice is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Ningbo Fangzheng Automobile and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Ningbo Fangzheng 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 Ningbo Fangzheng Automobile 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 Ningbo Fangzheng i.e., Ningbo Fangzheng and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Ningbo Fangzheng and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Ningbo Fangzheng Automobile is expected to under-perform the GigaDevice SemiconductorBei. In addition to that, Ningbo Fangzheng is 1.02 times more volatile than GigaDevice SemiconductorBeiji. It trades about -0.02 of its total potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.02 per unit of volatility. If you would invest 12,196 in GigaDevice SemiconductorBeiji on October 11, 2024 and sell it today you would earn a total of 94.00 from holding GigaDevice SemiconductorBeiji or generate 0.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ningbo Fangzheng Automobile vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Ningbo Fangzheng Aut |
| GigaDevice SemiconductorBei |
Ningbo Fangzheng and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ningbo Fangzheng and GigaDevice SemiconductorBei
The main advantage of trading using opposite Ningbo Fangzheng and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ningbo Fangzheng 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.| Ningbo Fangzheng vs. Fujian Longzhou Transportation | Ningbo Fangzheng vs. ROPEOK Technology Group | Ningbo Fangzheng vs. Sinofibers Technology Co | Ningbo Fangzheng vs. Tianshui Huatian Technology |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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