Correlation Between Chengtun Mining and Giantec Semiconductor
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By analyzing existing cross correlation between Chengtun Mining Group and Giantec Semiconductor Corp, you can compare the effects of market volatilities on Chengtun Mining and Giantec Semiconductor 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 Chengtun Mining with a short position of Giantec Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengtun Mining and Giantec Semiconductor.
Diversification Opportunities for Chengtun Mining and Giantec Semiconductor
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengtun and Giantec is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Chengtun Mining Group and Giantec Semiconductor Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Giantec Semiconductor and Chengtun Mining 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 Chengtun Mining Group are associated (or correlated) with Giantec Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Giantec Semiconductor has no effect on the direction of Chengtun Mining i.e., Chengtun Mining and Giantec Semiconductor go up and down completely randomly.
Pair Corralation between Chengtun Mining and Giantec Semiconductor
Assuming the 90 days trading horizon Chengtun Mining Group is expected to under-perform the Giantec Semiconductor. But the stock apears to be less risky and, when comparing its historical volatility, Chengtun Mining Group is 2.14 times less risky than Giantec Semiconductor. The stock trades about -0.03 of its potential returns per unit of risk. The Giantec Semiconductor Corp is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 5,990 in Giantec Semiconductor Corp on November 6, 2024 and sell it today you would earn a total of 874.00 from holding Giantec Semiconductor Corp or generate 14.59% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengtun Mining Group vs. Giantec Semiconductor Corp
Performance |
| Timeline |
| Chengtun Mining Group |
| Giantec Semiconductor |
Chengtun Mining and Giantec Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengtun Mining and Giantec Semiconductor
The main advantage of trading using opposite Chengtun Mining and Giantec Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengtun Mining position performs unexpectedly, Giantec Semiconductor 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 Giantec Semiconductor will offset losses from the drop in Giantec Semiconductor's long position.| Chengtun Mining vs. Jinhe Biotechnology Co | Chengtun Mining vs. Shandong Polymer Biochemicals | Chengtun Mining vs. Anhui Huaheng Biotechnology | Chengtun Mining vs. Dymatic Chemicals |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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