Correlation Between Chongqing Sulian and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Chongqing Sulian Plastic and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and GigaDevice SemiconductorBei.
Diversification Opportunities for Chongqing Sulian and GigaDevice SemiconductorBei
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chongqing and GigaDevice is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Chongqing Sulian and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Chongqing Sulian is expected to generate 1.33 times less return on investment than GigaDevice SemiconductorBei. In addition to that, Chongqing Sulian is 1.35 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.12 of its total potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.22 per unit of volatility. If you would invest 10,680 in GigaDevice SemiconductorBeiji on November 1, 2024 and sell it today you would earn a total of 2,060 from holding GigaDevice SemiconductorBeiji or generate 19.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chongqing Sulian Plastic vs. GigaDevice SemiconductorBeiji
Performance |
Timeline |
Chongqing Sulian Plastic |
GigaDevice SemiconductorBei |
Chongqing Sulian and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chongqing Sulian and GigaDevice SemiconductorBei
The main advantage of trading using opposite Chongqing Sulian and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.Chongqing Sulian vs. Yindu Kitchen Equipment | Chongqing Sulian vs. Techshine Electronics Co | Chongqing Sulian vs. Dongnan Electronics Co | Chongqing Sulian vs. Beijing YanDong MicroElectronic |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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