Correlation Between Giantec Semiconductor and Longxing Chemical
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By analyzing existing cross correlation between Giantec Semiconductor Corp and Longxing Chemical Stock, you can compare the effects of market volatilities on Giantec Semiconductor and Longxing Chemical 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 Longxing Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giantec Semiconductor and Longxing Chemical.
Diversification Opportunities for Giantec Semiconductor and Longxing Chemical
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between Giantec and Longxing is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding Giantec Semiconductor Corp and Longxing Chemical Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longxing Chemical Stock 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 Longxing Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longxing Chemical Stock has no effect on the direction of Giantec Semiconductor i.e., Giantec Semiconductor and Longxing Chemical go up and down completely randomly.
Pair Corralation between Giantec Semiconductor and Longxing Chemical
Assuming the 90 days trading horizon Giantec Semiconductor Corp is expected to generate 1.21 times more return on investment than Longxing Chemical. However, Giantec Semiconductor is 1.21 times more volatile than Longxing Chemical Stock. It trades about 0.16 of its potential returns per unit of risk. Longxing Chemical Stock is currently generating about -0.01 per unit of risk. If you would invest 5,788 in Giantec Semiconductor Corp on October 11, 2024 and sell it today you would earn a total of 866.00 from holding Giantec Semiconductor Corp or generate 14.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Giantec Semiconductor Corp vs. Longxing Chemical Stock
Performance |
| Timeline |
| Giantec Semiconductor |
| Longxing Chemical Stock |
Giantec Semiconductor and Longxing Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giantec Semiconductor and Longxing Chemical
The main advantage of trading using opposite Giantec Semiconductor and Longxing Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giantec Semiconductor position performs unexpectedly, Longxing Chemical 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 Longxing Chemical will offset losses from the drop in Longxing Chemical's long position.| Giantec Semiconductor vs. Ligao Foods CoLtd | Giantec Semiconductor vs. Great Sun Foods Co | Giantec Semiconductor vs. Beijing Sanyuan Foods | Giantec Semiconductor vs. HeBei Jinniu Chemical |
| Longxing Chemical vs. Puya Semiconductor Shanghai | Longxing Chemical vs. Giantec Semiconductor Corp | Longxing Chemical vs. Allwin Telecommunication Co | Longxing Chemical vs. Nexchip Semiconductor Corp |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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