Correlation Between GigaDevice SemiconductorBei and China Merchants
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By analyzing existing cross correlation between GigaDevice SemiconductorBeiji and China Merchants Shekou, you can compare the effects of market volatilities on GigaDevice SemiconductorBei and China Merchants 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 GigaDevice SemiconductorBei with a short position of China Merchants. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaDevice SemiconductorBei and China Merchants.
Diversification Opportunities for GigaDevice SemiconductorBei and China Merchants
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GigaDevice and China is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding GigaDevice SemiconductorBeiji and China Merchants Shekou in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Merchants Shekou and GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBeiji are associated (or correlated) with China Merchants. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Merchants Shekou has no effect on the direction of GigaDevice SemiconductorBei i.e., GigaDevice SemiconductorBei and China Merchants go up and down completely randomly.
Pair Corralation between GigaDevice SemiconductorBei and China Merchants
Assuming the 90 days trading horizon GigaDevice SemiconductorBeiji is expected to under-perform the China Merchants. In addition to that, GigaDevice SemiconductorBei is 1.04 times more volatile than China Merchants Shekou. It trades about 0.0 of its total potential returns per unit of risk. China Merchants Shekou is currently generating about 0.0 per unit of volatility. If you would invest 1,305 in China Merchants Shekou on August 31, 2024 and sell it today you would lose (127.00) from holding China Merchants Shekou or give up 9.73% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaDevice SemiconductorBeiji vs. China Merchants Shekou
Performance |
| Timeline |
| GigaDevice SemiconductorBei |
| China Merchants Shekou |
GigaDevice SemiconductorBei and China Merchants Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaDevice SemiconductorBei and China Merchants
The main advantage of trading using opposite GigaDevice SemiconductorBei and China Merchants positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaDevice SemiconductorBei position performs unexpectedly, China Merchants 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 China Merchants will offset losses from the drop in China Merchants' long position.The idea behind GigaDevice SemiconductorBeiji and China Merchants Shekou pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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