Correlation Between GigaMedia and Hyster Yale
Can any of the company-specific risk be diversified away by investing in both GigaMedia and Hyster Yale 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 GigaMedia and Hyster Yale into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GigaMedia and Hyster Yale Materials Handling, you can compare the effects of market volatilities on GigaMedia and Hyster Yale 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 Hyster Yale. Check out your portfolio center. Please also check ongoing floating volatility patterns of GigaMedia and Hyster Yale.
Diversification Opportunities for GigaMedia and Hyster Yale
-0.55 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between GigaMedia and Hyster is -0.55. Overlapping area represents the amount of risk that can be diversified away by holding GigaMedia and Hyster Yale Materials Handling in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hyster Yale Materials 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 Hyster Yale. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hyster Yale Materials has no effect on the direction of GigaMedia i.e., GigaMedia and Hyster Yale go up and down completely randomly.
Pair Corralation between GigaMedia and Hyster Yale
Assuming the 90 days trading horizon GigaMedia is expected to generate 0.56 times more return on investment than Hyster Yale. However, GigaMedia is 1.77 times less risky than Hyster Yale. It trades about 0.17 of its potential returns per unit of risk. Hyster Yale Materials Handling is currently generating about -0.12 per unit of risk. If you would invest 118.00 in GigaMedia on September 13, 2024 and sell it today you would earn a total of 15.00 from holding GigaMedia or generate 12.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GigaMedia vs. Hyster Yale Materials Handling
Performance |
| Timeline |
| GigaMedia |
| Hyster Yale Materials |
GigaMedia and Hyster Yale Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GigaMedia and Hyster Yale
The main advantage of trading using opposite GigaMedia and Hyster Yale positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GigaMedia position performs unexpectedly, Hyster Yale 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 Hyster Yale will offset losses from the drop in Hyster Yale's long position.| GigaMedia vs. Titan Machinery | GigaMedia vs. AUST AGRICULTURAL | GigaMedia vs. North American Construction | GigaMedia vs. ALEFARM BREWING DK 05 |
| Hyster Yale vs. OURGAME INTHOLDL 00005 | Hyster Yale vs. Media and Games | Hyster Yale vs. American Eagle Outfitters | Hyster Yale vs. GigaMedia |
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 Stocks Directory module to find actively traded stocks across global markets.
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