Correlation Between Giantec Semiconductor and Hubei Tech
Specify exactly 2 symbols:
By analyzing existing cross correlation between Giantec Semiconductor Corp and Hubei Tech Semiconductors, you can compare the effects of market volatilities on Giantec Semiconductor and Hubei Tech 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 Hubei Tech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giantec Semiconductor and Hubei Tech.
Diversification Opportunities for Giantec Semiconductor and Hubei Tech
-0.33 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Giantec and Hubei is -0.33. Overlapping area represents the amount of risk that can be diversified away by holding Giantec Semiconductor Corp and Hubei Tech Semiconductors in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Tech Semiconductors 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 Hubei Tech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Tech Semiconductors has no effect on the direction of Giantec Semiconductor i.e., Giantec Semiconductor and Hubei Tech go up and down completely randomly.
Pair Corralation between Giantec Semiconductor and Hubei Tech
Assuming the 90 days trading horizon Giantec Semiconductor Corp is expected to generate 1.75 times more return on investment than Hubei Tech. However, Giantec Semiconductor is 1.75 times more volatile than Hubei Tech Semiconductors. It trades about 0.24 of its potential returns per unit of risk. Hubei Tech Semiconductors is currently generating about 0.01 per unit of risk. If you would invest 5,591 in Giantec Semiconductor Corp on November 4, 2024 and sell it today you would earn a total of 1,273 from holding Giantec Semiconductor Corp or generate 22.77% 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. Hubei Tech Semiconductors
Performance |
| Timeline |
| Giantec Semiconductor |
| Hubei Tech Semiconductors |
Giantec Semiconductor and Hubei Tech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giantec Semiconductor and Hubei Tech
The main advantage of trading using opposite Giantec Semiconductor and Hubei Tech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giantec Semiconductor position performs unexpectedly, Hubei Tech 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 Hubei Tech will offset losses from the drop in Hubei Tech's long position.The idea behind Giantec Semiconductor Corp and Hubei Tech Semiconductors 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.
| Hubei Tech vs. China Publishing Media | Hubei Tech vs. Ningbo Fangzheng Automobile | Hubei Tech vs. Simei Media Co | Hubei Tech vs. Ciwen Media 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
Other Complementary Tools
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |