Correlation Between Gemdale Corp and Piotech
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By analyzing existing cross correlation between Gemdale Corp and Piotech Inc A, you can compare the effects of market volatilities on Gemdale Corp and Piotech 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 Gemdale Corp with a short position of Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and Piotech.
Diversification Opportunities for Gemdale Corp and Piotech
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gemdale and Piotech is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A and Gemdale Corp 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 Gemdale Corp are associated (or correlated) with Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and Piotech go up and down completely randomly.
Pair Corralation between Gemdale Corp and Piotech
Assuming the 90 days trading horizon Gemdale Corp is expected to generate 0.84 times more return on investment than Piotech. However, Gemdale Corp is 1.2 times less risky than Piotech. It trades about -0.18 of its potential returns per unit of risk. Piotech Inc A is currently generating about -0.18 per unit of risk. If you would invest 486.00 in Gemdale Corp on October 18, 2024 and sell it today you would lose (35.00) from holding Gemdale Corp or give up 7.2% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. Piotech Inc A
Performance |
| Timeline |
| Gemdale Corp |
| Piotech Inc A |
Gemdale Corp and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and Piotech
The main advantage of trading using opposite Gemdale Corp and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| Gemdale Corp vs. HaiXin Foods Co | Gemdale Corp vs. Beijing Sanyuan Foods | Gemdale Corp vs. Hainan Haiqi Transportation | Gemdale Corp vs. Qingdao Foods Co |
| Piotech vs. Tongyu Communication | Piotech vs. Ningxia Building Materials | Piotech vs. Zhejiang Kingland Pipeline | Piotech vs. Guangzhou Haige Communications |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
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