Correlation Between GlobalWafers and Ibase Gaming
Can any of the company-specific risk be diversified away by investing in both GlobalWafers and Ibase Gaming 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 GlobalWafers and Ibase Gaming into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GlobalWafers Co and Ibase Gaming, you can compare the effects of market volatilities on GlobalWafers and Ibase Gaming 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 GlobalWafers with a short position of Ibase Gaming. Check out your portfolio center. Please also check ongoing floating volatility patterns of GlobalWafers and Ibase Gaming.
Diversification Opportunities for GlobalWafers and Ibase Gaming
0.42 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between GlobalWafers and Ibase is 0.42. Overlapping area represents the amount of risk that can be diversified away by holding GlobalWafers Co and Ibase Gaming in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ibase Gaming and GlobalWafers 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 GlobalWafers Co are associated (or correlated) with Ibase Gaming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ibase Gaming has no effect on the direction of GlobalWafers i.e., GlobalWafers and Ibase Gaming go up and down completely randomly.
Pair Corralation between GlobalWafers and Ibase Gaming
Assuming the 90 days trading horizon GlobalWafers Co is expected to generate 0.68 times more return on investment than Ibase Gaming. However, GlobalWafers Co is 1.48 times less risky than Ibase Gaming. It trades about 0.01 of its potential returns per unit of risk. Ibase Gaming is currently generating about -0.01 per unit of risk. If you would invest 41,017 in GlobalWafers Co on September 14, 2024 and sell it today you would lose (417.00) from holding GlobalWafers Co or give up 1.02% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GlobalWafers Co vs. Ibase Gaming
Performance |
| Timeline |
| GlobalWafers |
| Ibase Gaming |
GlobalWafers and Ibase Gaming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GlobalWafers and Ibase Gaming
The main advantage of trading using opposite GlobalWafers and Ibase Gaming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GlobalWafers position performs unexpectedly, Ibase Gaming 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 Ibase Gaming will offset losses from the drop in Ibase Gaming's long position.| GlobalWafers vs. AU Optronics | GlobalWafers vs. Innolux Corp | GlobalWafers vs. Ruentex Development Co | GlobalWafers vs. WiseChip Semiconductor |
| Ibase Gaming vs. WIN Semiconductors | Ibase Gaming vs. GlobalWafers Co | Ibase Gaming vs. Novatek Microelectronics Corp | Ibase Gaming vs. Ruentex Development Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
Other Complementary Tools
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Share Portfolio Track or share privately all of your investments from the convenience of any device | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |