Correlation Between Grand Ocean and Silicon Power
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and Silicon Power 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 Grand Ocean and Silicon Power into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and Silicon Power Computer, you can compare the effects of market volatilities on Grand Ocean and Silicon Power 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 Grand Ocean with a short position of Silicon Power. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and Silicon Power.
Diversification Opportunities for Grand Ocean and Silicon Power
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between Grand and Silicon is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and Silicon Power Computer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Silicon Power Computer and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with Silicon Power. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Silicon Power Computer has no effect on the direction of Grand Ocean i.e., Grand Ocean and Silicon Power go up and down completely randomly.
Pair Corralation between Grand Ocean and Silicon Power
Assuming the 90 days trading horizon Grand Ocean is expected to generate 256.5 times less return on investment than Silicon Power. In addition to that, Grand Ocean is 1.03 times more volatile than Silicon Power Computer. It trades about 0.0 of its total potential returns per unit of risk. Silicon Power Computer is currently generating about 0.02 per unit of volatility. If you would invest 3,011 in Silicon Power Computer on September 12, 2024 and sell it today you would earn a total of 234.00 from holding Silicon Power Computer or generate 7.77% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. Silicon Power Computer
Performance |
| Timeline |
| Grand Ocean Retail |
| Silicon Power Computer |
Grand Ocean and Silicon Power Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and Silicon Power
The main advantage of trading using opposite Grand Ocean and Silicon Power positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, Silicon Power 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 Silicon Power will offset losses from the drop in Silicon Power's long position.| Grand Ocean vs. Feng Tay Enterprises | Grand Ocean vs. Ruentex Development Co | Grand Ocean vs. WiseChip Semiconductor | Grand Ocean vs. Novatek Microelectronics Corp |
| Silicon Power vs. Orient Semiconductor Electronics | Silicon Power vs. Niko Semiconductor Co | Silicon Power vs. WIN Semiconductors | Silicon Power vs. Grand Ocean Retail |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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