Correlation Between Tainergy Tech and Gigastorage Corp
Can any of the company-specific risk be diversified away by investing in both Tainergy Tech and Gigastorage Corp 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 Tainergy Tech and Gigastorage Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tainergy Tech Co and Gigastorage Corp, you can compare the effects of market volatilities on Tainergy Tech and Gigastorage Corp 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 Tainergy Tech with a short position of Gigastorage Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tainergy Tech and Gigastorage Corp.
Diversification Opportunities for Tainergy Tech and Gigastorage Corp
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tainergy and Gigastorage is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Tainergy Tech Co and Gigastorage Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gigastorage Corp and Tainergy Tech 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 Tainergy Tech Co are associated (or correlated) with Gigastorage Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gigastorage Corp has no effect on the direction of Tainergy Tech i.e., Tainergy Tech and Gigastorage Corp go up and down completely randomly.
Pair Corralation between Tainergy Tech and Gigastorage Corp
Assuming the 90 days trading horizon Tainergy Tech Co is expected to under-perform the Gigastorage Corp. In addition to that, Tainergy Tech is 1.01 times more volatile than Gigastorage Corp. It trades about -0.14 of its total potential returns per unit of risk. Gigastorage Corp is currently generating about -0.08 per unit of volatility. If you would invest 2,200 in Gigastorage Corp on September 3, 2024 and sell it today you would lose (530.00) from holding Gigastorage Corp or give up 24.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tainergy Tech Co vs. Gigastorage Corp
Performance |
| Timeline |
| Tainergy Tech |
| Gigastorage Corp |
Tainergy Tech and Gigastorage Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tainergy Tech and Gigastorage Corp
The main advantage of trading using opposite Tainergy Tech and Gigastorage Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tainergy Tech position performs unexpectedly, Gigastorage Corp 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 Gigastorage Corp will offset losses from the drop in Gigastorage Corp's long position.| Tainergy Tech vs. Taiwan Semiconductor Manufacturing | Tainergy Tech vs. Yang Ming Marine | Tainergy Tech vs. ASE Industrial Holding | Tainergy Tech vs. AU Optronics |
| Gigastorage Corp vs. Taiwan Semiconductor Manufacturing | Gigastorage Corp vs. Yang Ming Marine | Gigastorage Corp vs. ASE Industrial Holding | Gigastorage Corp vs. AU Optronics |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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