Correlation Between Giantec Semiconductor and Cloud Live
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By analyzing existing cross correlation between Giantec Semiconductor Corp and Cloud Live Technology, you can compare the effects of market volatilities on Giantec Semiconductor and Cloud Live 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 Giantec Semiconductor with a short position of Cloud Live. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giantec Semiconductor and Cloud Live.
Diversification Opportunities for Giantec Semiconductor and Cloud Live
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Giantec and Cloud is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Giantec Semiconductor Corp and Cloud Live Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cloud Live Technology and Giantec Semiconductor 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 Giantec Semiconductor Corp are associated (or correlated) with Cloud Live. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cloud Live Technology has no effect on the direction of Giantec Semiconductor i.e., Giantec Semiconductor and Cloud Live go up and down completely randomly.
Pair Corralation between Giantec Semiconductor and Cloud Live
Assuming the 90 days trading horizon Giantec Semiconductor Corp is expected to generate 1.04 times more return on investment than Cloud Live. However, Giantec Semiconductor is 1.04 times more volatile than Cloud Live Technology. It trades about 0.18 of its potential returns per unit of risk. Cloud Live Technology is currently generating about -0.37 per unit of risk. If you would invest 6,329 in Giantec Semiconductor Corp on October 28, 2024 and sell it today you would earn a total of 1,137 from holding Giantec Semiconductor Corp or generate 17.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Giantec Semiconductor Corp vs. Cloud Live Technology
Performance |
| Timeline |
| Giantec Semiconductor |
| Cloud Live Technology |
Giantec Semiconductor and Cloud Live Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giantec Semiconductor and Cloud Live
The main advantage of trading using opposite Giantec Semiconductor and Cloud Live positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giantec Semiconductor position performs unexpectedly, Cloud Live 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 Cloud Live will offset losses from the drop in Cloud Live's long position.The idea behind Giantec Semiconductor Corp and Cloud Live Technology 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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