Correlation Between Giantec Semiconductor and Xiamen Jihong
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By analyzing existing cross correlation between Giantec Semiconductor Corp and Xiamen Jihong Package, you can compare the effects of market volatilities on Giantec Semiconductor 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 Giantec Semiconductor with a short position of Xiamen Jihong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giantec Semiconductor and Xiamen Jihong.
Diversification Opportunities for Giantec Semiconductor and Xiamen Jihong
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Giantec and Xiamen is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Giantec Semiconductor Corp 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 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 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 Giantec Semiconductor i.e., Giantec Semiconductor and Xiamen Jihong go up and down completely randomly.
Pair Corralation between Giantec Semiconductor and Xiamen Jihong
Assuming the 90 days trading horizon Giantec Semiconductor Corp is expected to generate 1.28 times more return on investment than Xiamen Jihong. However, Giantec Semiconductor is 1.28 times more volatile than Xiamen Jihong Package. It trades about 0.04 of its potential returns per unit of risk. Xiamen Jihong Package is currently generating about -0.01 per unit of risk. If you would invest 5,242 in Giantec Semiconductor Corp on October 16, 2024 and sell it today you would earn a total of 1,513 from holding Giantec Semiconductor Corp or generate 28.86% 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. Xiamen Jihong Package
Performance |
| Timeline |
| Giantec Semiconductor |
| Xiamen Jihong Package |
Giantec Semiconductor and Xiamen Jihong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giantec Semiconductor and Xiamen Jihong
The main advantage of trading using opposite Giantec Semiconductor and Xiamen Jihong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giantec Semiconductor 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.| Giantec Semiconductor vs. Songz Automobile Air | Giantec Semiconductor vs. Unisplendour Corp | Giantec Semiconductor vs. Jiangxi Hengda Hi Tech | Giantec Semiconductor vs. Guangzhou Haige Communications |
| Xiamen Jihong vs. Giantec Semiconductor Corp | Xiamen Jihong vs. Eastroc Beverage Group | Xiamen Jihong vs. GigaDevice SemiconductorBeiji | Xiamen Jihong vs. Beijing Sanyuan Foods |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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