Correlation Between Suzhou Oriental and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Suzhou Oriental Semiconductor and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Suzhou Oriental and GigaDevice SemiconductorBei 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 Suzhou Oriental with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Suzhou Oriental and GigaDevice SemiconductorBei.
Diversification Opportunities for Suzhou Oriental and GigaDevice SemiconductorBei
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Suzhou and GigaDevice is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Suzhou Oriental Semiconductor and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Suzhou Oriental 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 Suzhou Oriental Semiconductor are associated (or correlated) with GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of Suzhou Oriental i.e., Suzhou Oriental and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Suzhou Oriental and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Suzhou Oriental Semiconductor is expected to under-perform the GigaDevice SemiconductorBei. In addition to that, Suzhou Oriental is 1.29 times more volatile than GigaDevice SemiconductorBeiji. It trades about -0.06 of its total potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.01 per unit of volatility. If you would invest 12,196 in GigaDevice SemiconductorBeiji on October 11, 2024 and sell it today you would lose (731.00) from holding GigaDevice SemiconductorBeiji or give up 5.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Suzhou Oriental Semiconductor vs. GigaDevice SemiconductorBeiji
Performance |
| Timeline |
| Suzhou Oriental Semi |
| GigaDevice SemiconductorBei |
Suzhou Oriental and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Suzhou Oriental and GigaDevice SemiconductorBei
The main advantage of trading using opposite Suzhou Oriental and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Suzhou Oriental position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.| Suzhou Oriental vs. Heilongjiang Publishing Media | Suzhou Oriental vs. Tongyu Communication | Suzhou Oriental vs. Haima Automobile Group | Suzhou Oriental vs. Xinhua Winshare Publishing |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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