Correlation Between GigaDevice SemiconductorBei and Xiamen Jihong
Specify exactly 2 symbols:
By analyzing existing cross correlation between GigaDevice SemiconductorBeiji and Xiamen Jihong Package, you can compare the effects of market volatilities on GigaDevice SemiconductorBei and Xiamen Jihong 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 Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaDevice SemiconductorBei and Xiamen Jihong.
Diversification Opportunities for GigaDevice SemiconductorBei and Xiamen Jihong
-0.61 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GigaDevice and Xiamen is -0.61. Overlapping area represents the amount of risk that can be diversified away by holding GigaDevice SemiconductorBeiji and Xiamen Jihong Package in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiamen Jihong Package 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 Xiamen Jihong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiamen Jihong Package has no effect on the direction of GigaDevice SemiconductorBei i.e., GigaDevice SemiconductorBei and Xiamen Jihong go up and down completely randomly.
Pair Corralation between GigaDevice SemiconductorBei and Xiamen Jihong
Assuming the 90 days trading horizon GigaDevice SemiconductorBeiji is expected to generate 1.34 times more return on investment than Xiamen Jihong. However, GigaDevice SemiconductorBei is 1.34 times more volatile than Xiamen Jihong Package. It trades about 0.24 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.15 per unit of risk. If you would invest 8,578 in GigaDevice SemiconductorBeiji on October 30, 2024 and sell it today you would earn a total of 4,162 from holding GigaDevice SemiconductorBeiji or generate 48.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaDevice SemiconductorBeiji vs. Xiamen Jihong Package
Performance |
| Timeline |
| GigaDevice SemiconductorBei |
| Xiamen Jihong Package |
GigaDevice SemiconductorBei and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaDevice SemiconductorBei and Xiamen Jihong
The main advantage of trading using opposite GigaDevice SemiconductorBei and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaDevice SemiconductorBei position performs unexpectedly, Xiamen Jihong 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 Xiamen Jihong will offset losses from the drop in Xiamen Jihong's long position.The idea behind GigaDevice SemiconductorBeiji and Xiamen Jihong Package 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.
| Xiamen Jihong vs. Caihong Display Devices | Xiamen Jihong vs. Unisplendour Corp | Xiamen Jihong vs. Zhejiang JIULI Hi tech | Xiamen Jihong vs. Kuang Chi Technologies |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes |