Correlation Between Giantec Semiconductor and Ligao Foods
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By analyzing existing cross correlation between Giantec Semiconductor Corp and Ligao Foods CoLtd, you can compare the effects of market volatilities on Giantec Semiconductor and Ligao Foods 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 Ligao Foods. Check out your portfolio center. Please also check ongoing floating volatility patterns of Giantec Semiconductor and Ligao Foods.
Diversification Opportunities for Giantec Semiconductor and Ligao Foods
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Giantec and Ligao is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Giantec Semiconductor Corp and Ligao Foods CoLtd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ligao Foods CoLtd 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 Ligao Foods. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ligao Foods CoLtd has no effect on the direction of Giantec Semiconductor i.e., Giantec Semiconductor and Ligao Foods go up and down completely randomly.
Pair Corralation between Giantec Semiconductor and Ligao Foods
Assuming the 90 days trading horizon Giantec Semiconductor Corp is expected to generate 1.25 times more return on investment than Ligao Foods. However, Giantec Semiconductor is 1.25 times more volatile than Ligao Foods CoLtd. It trades about 0.11 of its potential returns per unit of risk. Ligao Foods CoLtd is currently generating about -0.2 per unit of risk. If you would invest 6,107 in Giantec Semiconductor Corp on October 12, 2024 and sell it today you would earn a total of 547.00 from holding Giantec Semiconductor Corp or generate 8.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Giantec Semiconductor Corp vs. Ligao Foods CoLtd
Performance |
| Timeline |
| Giantec Semiconductor |
| Ligao Foods CoLtd |
Giantec Semiconductor and Ligao Foods Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Giantec Semiconductor and Ligao Foods
The main advantage of trading using opposite Giantec Semiconductor and Ligao Foods positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Giantec Semiconductor position performs unexpectedly, Ligao Foods 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 Ligao Foods will offset losses from the drop in Ligao Foods' 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 |
| Ligao Foods vs. Tianshui Huatian Technology | Ligao Foods vs. Guangdong Transtek Medical | Ligao Foods vs. Holitech Technology Co | Ligao Foods vs. Linewell Software 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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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