Correlation Between Zoy Home and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Zoy Home Furnishing and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Zoy Home 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 Zoy Home with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoy Home and GigaDevice SemiconductorBei.
Diversification Opportunities for Zoy Home and GigaDevice SemiconductorBei
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Zoy and GigaDevice is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Zoy Home Furnishing and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Zoy Home 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 Zoy Home Furnishing 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 Zoy Home i.e., Zoy Home and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Zoy Home and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Zoy Home Furnishing is expected to under-perform the GigaDevice SemiconductorBei. But the stock apears to be less risky and, when comparing its historical volatility, Zoy Home Furnishing is 1.13 times less risky than GigaDevice SemiconductorBei. The stock trades about -0.14 of its potential returns per unit of risk. The GigaDevice SemiconductorBeiji is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 9,666 in GigaDevice SemiconductorBeiji on October 16, 2024 and sell it today you would earn a total of 3,298 from holding GigaDevice SemiconductorBeiji or generate 34.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoy Home Furnishing vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Zoy Home Furnishing |
| GigaDevice SemiconductorBei |
Zoy Home and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoy Home and GigaDevice SemiconductorBei
The main advantage of trading using opposite Zoy Home and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoy Home 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.| Zoy Home vs. Shenyang Huitian Thermal | Zoy Home vs. North Copper Shanxi | Zoy Home vs. Shanghai Yanpu Metal | Zoy Home vs. Guangdong Jingyi Metal |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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