Correlation Between GigaMedia and Bayerische Motoren
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By analyzing existing cross correlation between GigaMedia and Bayerische Motoren Werke, you can compare the effects of market volatilities on GigaMedia and Bayerische Motoren 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 GigaMedia with a short position of Bayerische Motoren. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Bayerische Motoren.
Diversification Opportunities for GigaMedia and Bayerische Motoren
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GigaMedia and Bayerische is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and Bayerische Motoren Werke in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bayerische Motoren Werke and GigaMedia 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 GigaMedia are associated (or correlated) with Bayerische Motoren. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bayerische Motoren Werke has no effect on the direction of GigaMedia i.e., GigaMedia and Bayerische Motoren go up and down completely randomly.
Pair Corralation between GigaMedia and Bayerische Motoren
Assuming the 90 days trading horizon GigaMedia is expected to generate 2.28 times more return on investment than Bayerische Motoren. However, GigaMedia is 2.28 times more volatile than Bayerische Motoren Werke. It trades about 0.09 of its potential returns per unit of risk. Bayerische Motoren Werke is currently generating about 0.09 per unit of risk. If you would invest 140.00 in GigaMedia on October 25, 2024 and sell it today you would earn a total of 6.00 from holding GigaMedia or generate 4.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.44% |
| Values | Daily Returns |
GigaMedia vs. Bayerische Motoren Werke
Performance |
| Timeline |
| GigaMedia |
| Bayerische Motoren Werke |
GigaMedia and Bayerische Motoren Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Bayerische Motoren
The main advantage of trading using opposite GigaMedia and Bayerische Motoren positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia position performs unexpectedly, Bayerische Motoren 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 Bayerische Motoren will offset losses from the drop in Bayerische Motoren's long position.| GigaMedia vs. MAGNUM MINING EXP | GigaMedia vs. Park Hotels Resorts | GigaMedia vs. Perseus Mining Limited | GigaMedia vs. Harmony Gold Mining |
| Bayerische Motoren vs. Townsquare Media | Bayerische Motoren vs. GigaMedia | Bayerische Motoren vs. GEELY AUTOMOBILE | Bayerische Motoren vs. PENN Entertainment |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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