Correlation Between Gemdale Corp and National Silicon
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By analyzing existing cross correlation between Gemdale Corp and National Silicon Industry, you can compare the effects of market volatilities on Gemdale Corp and National Silicon 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 National Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gemdale Corp and National Silicon.
Diversification Opportunities for Gemdale Corp and National Silicon
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gemdale and National is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Gemdale Corp and National Silicon Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on National Silicon Industry 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 National Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of National Silicon Industry has no effect on the direction of Gemdale Corp i.e., Gemdale Corp and National Silicon go up and down completely randomly.
Pair Corralation between Gemdale Corp and National Silicon
Assuming the 90 days trading horizon Gemdale Corp is expected to generate 0.93 times more return on investment than National Silicon. However, Gemdale Corp is 1.07 times less risky than National Silicon. It trades about -0.18 of its potential returns per unit of risk. National Silicon Industry is currently generating about -0.21 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gemdale Corp vs. National Silicon Industry
Performance |
| Timeline |
| Gemdale Corp |
| National Silicon Industry |
Gemdale Corp and National Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gemdale Corp and National Silicon
The main advantage of trading using opposite Gemdale Corp and National Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gemdale Corp position performs unexpectedly, National Silicon 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 National Silicon will offset losses from the drop in National Silicon'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 |
| National Silicon vs. Ningxia Younglight Chemicals | National Silicon vs. Cicc Fund Management | National Silicon vs. Hengli Petrochemical Co | National Silicon vs. AVIC Fund Management |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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