Correlation Between WinMate Communication and Grand Plastic
Can any of the company-specific risk be diversified away by investing in both WinMate Communication and Grand Plastic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining WinMate Communication and Grand Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between WinMate Communication INC and Grand Plastic Technology, you can compare the effects of market volatilities on WinMate Communication and Grand Plastic 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 WinMate Communication with a short position of Grand Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of WinMate Communication and Grand Plastic.
Diversification Opportunities for WinMate Communication and Grand Plastic
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between WinMate and Grand is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding WinMate Communication INC and Grand Plastic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Plastic Technology and WinMate Communication 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 WinMate Communication INC are associated (or correlated) with Grand Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Plastic Technology has no effect on the direction of WinMate Communication i.e., WinMate Communication and Grand Plastic go up and down completely randomly.
Pair Corralation between WinMate Communication and Grand Plastic
Assuming the 90 days trading horizon WinMate Communication is expected to generate 3.6 times less return on investment than Grand Plastic. But when comparing it to its historical volatility, WinMate Communication INC is 2.02 times less risky than Grand Plastic. It trades about 0.07 of its potential returns per unit of risk. Grand Plastic Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 22,358 in Grand Plastic Technology on September 3, 2024 and sell it today you would earn a total of 144,642 from holding Grand Plastic Technology or generate 646.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
WinMate Communication INC vs. Grand Plastic Technology
Performance |
| Timeline |
| WinMate Communication INC |
| Grand Plastic Technology |
WinMate Communication and Grand Plastic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with WinMate Communication and Grand Plastic
The main advantage of trading using opposite WinMate Communication and Grand Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if WinMate Communication position performs unexpectedly, Grand Plastic 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 Grand Plastic will offset losses from the drop in Grand Plastic's long position.| WinMate Communication vs. Hon Hai Precision | WinMate Communication vs. Delta Electronics | WinMate Communication vs. LARGAN Precision Co | WinMate Communication vs. AU Optronics |
| Grand Plastic vs. WIN Semiconductors | Grand Plastic vs. Delta Electronics | Grand Plastic vs. WiseChip Semiconductor | Grand Plastic vs. Novatek Microelectronics Corp |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios |