Correlation Between General Plastic and Chinese Gamer
Can any of the company-specific risk be diversified away by investing in both General Plastic and Chinese Gamer at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining General Plastic and Chinese Gamer into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between General Plastic Industrial and Chinese Gamer International, you can compare the effects of market volatilities on General Plastic and Chinese Gamer 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 General Plastic with a short position of Chinese Gamer. Check out your portfolio center. Please also check ongoing floating volatility patterns of General Plastic and Chinese Gamer.
Diversification Opportunities for General Plastic and Chinese Gamer
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between General and Chinese is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding General Plastic Industrial and Chinese Gamer International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Gamer Intern and General Plastic 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 General Plastic Industrial are associated (or correlated) with Chinese Gamer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Gamer Intern has no effect on the direction of General Plastic i.e., General Plastic and Chinese Gamer go up and down completely randomly.
Pair Corralation between General Plastic and Chinese Gamer
Assuming the 90 days trading horizon General Plastic Industrial is expected to generate 0.54 times more return on investment than Chinese Gamer. However, General Plastic Industrial is 1.84 times less risky than Chinese Gamer. It trades about -0.19 of its potential returns per unit of risk. Chinese Gamer International is currently generating about -0.17 per unit of risk. If you would invest 3,625 in General Plastic Industrial on September 3, 2024 and sell it today you would lose (100.00) from holding General Plastic Industrial or give up 2.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
General Plastic Industrial vs. Chinese Gamer International
Performance |
| Timeline |
| General Plastic Indu |
| Chinese Gamer Intern |
General Plastic and Chinese Gamer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with General Plastic and Chinese Gamer
The main advantage of trading using opposite General Plastic and Chinese Gamer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if General Plastic position performs unexpectedly, Chinese Gamer 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 Chinese Gamer will offset losses from the drop in Chinese Gamer's long position.| General Plastic vs. Universal Microelectronics Co | General Plastic vs. AVerMedia Technologies | General Plastic vs. Symtek Automation Asia | General Plastic vs. WiseChip Semiconductor |
| Chinese Gamer vs. YuantaP shares Taiwan Electronics | Chinese Gamer vs. Fubon MSCI Taiwan | Chinese Gamer vs. YuantaP shares Taiwan Mid Cap | Chinese Gamer vs. YuantaP shares Taiwan Top |
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 Directory module to find actively traded commodities issued by global exchanges.
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