Correlation Between Eshallgo and GCT Semiconductor
Can any of the company-specific risk be diversified away by investing in both Eshallgo and GCT Semiconductor at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Eshallgo and GCT Semiconductor into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Eshallgo Class A and GCT Semiconductor Holding, you can compare the effects of market volatilities on Eshallgo and GCT Semiconductor 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 Eshallgo with a short position of GCT Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eshallgo and GCT Semiconductor.
Diversification Opportunities for Eshallgo and GCT Semiconductor
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Eshallgo and GCT is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Eshallgo Class A and GCT Semiconductor Holding in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GCT Semiconductor Holding and Eshallgo 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 Eshallgo Class A are associated (or correlated) with GCT Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GCT Semiconductor Holding has no effect on the direction of Eshallgo i.e., Eshallgo and GCT Semiconductor go up and down completely randomly.
Pair Corralation between Eshallgo and GCT Semiconductor
Given the investment horizon of 90 days Eshallgo Class A is expected to generate 2.05 times more return on investment than GCT Semiconductor. However, Eshallgo is 2.05 times more volatile than GCT Semiconductor Holding. It trades about 0.08 of its potential returns per unit of risk. GCT Semiconductor Holding is currently generating about 0.04 per unit of risk. If you would invest 0.00 in Eshallgo Class A on November 19, 2024 and sell it today you would earn a total of 110.00 from holding Eshallgo Class A or generate 9.223372036854776E16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 70.18% |
| Values | Daily Returns |
Eshallgo Class A vs. GCT Semiconductor Holding
Performance |
| Timeline |
| Eshallgo Class A |
| GCT Semiconductor Holding |
Eshallgo and GCT Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eshallgo and GCT Semiconductor
The main advantage of trading using opposite Eshallgo and GCT Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eshallgo position performs unexpectedly, GCT Semiconductor 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 GCT Semiconductor will offset losses from the drop in GCT Semiconductor's long position.| Eshallgo vs. Zane Interactive Publishing | Eshallgo vs. ServiceNow | Eshallgo vs. Asure Software | Eshallgo vs. Lincoln Educational Services |
| GCT Semiconductor vs. Lery Seafood Group | GCT Semiconductor vs. McGrath RentCorp | GCT Semiconductor vs. Triton International Limited | GCT Semiconductor vs. Multi Ways Holdings |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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