Correlation Between Jiangsu Yueda and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Jiangsu Yueda Investment and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Jiangsu Yueda and GigaDevice SemiconductorBei 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 Jiangsu Yueda with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Yueda and GigaDevice SemiconductorBei.
Diversification Opportunities for Jiangsu Yueda and GigaDevice SemiconductorBei
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Jiangsu and GigaDevice is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Yueda Investment and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Jiangsu Yueda 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 Jiangsu Yueda Investment are associated (or correlated) with GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Jiangsu Yueda i.e., Jiangsu Yueda and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Jiangsu Yueda and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Jiangsu Yueda is expected to generate 16.96 times less return on investment than GigaDevice SemiconductorBei. But when comparing it to its historical volatility, Jiangsu Yueda Investment is 3.29 times less risky than GigaDevice SemiconductorBei. It trades about 0.07 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.35 of returns per unit of risk over similar time horizon. If you would invest 9,954 in GigaDevice SemiconductorBeiji on November 5, 2024 and sell it today you would earn a total of 2,786 from holding GigaDevice SemiconductorBeiji or generate 27.99% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Yueda Investment vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Jiangsu Yueda Investment |
| GigaDevice SemiconductorBei |
Jiangsu Yueda and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Yueda and GigaDevice SemiconductorBei
The main advantage of trading using opposite Jiangsu Yueda and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Yueda position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| Jiangsu Yueda vs. Dingli Communications Corp | Jiangsu Yueda vs. Tongyu Communication | Jiangsu Yueda vs. China Satellite Communications | Jiangsu Yueda vs. Beijing Baolande Software |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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