Correlation Between Alphabet and CG Hi
Can any of the company-specific risk be diversified away by investing in both Alphabet and CG Hi 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 Alphabet and CG Hi into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Alphabet Inc Class C and CG Hi Tech, you can compare the effects of market volatilities on Alphabet and CG Hi 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 Alphabet with a short position of CG Hi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and CG Hi.
Diversification Opportunities for Alphabet and CG Hi
Very good diversification
The 3 months correlation between Alphabet and 264660 is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C and CG Hi Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CG Hi Tech and Alphabet 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 Alphabet Inc Class C are associated (or correlated) with CG Hi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CG Hi Tech has no effect on the direction of Alphabet i.e., Alphabet and CG Hi go up and down completely randomly.
Pair Corralation between Alphabet and CG Hi
Given the investment horizon of 90 days Alphabet Inc Class C is expected to generate 0.72 times more return on investment than CG Hi. However, Alphabet Inc Class C is 1.38 times less risky than CG Hi. It trades about 0.08 of its potential returns per unit of risk. CG Hi Tech is currently generating about 0.02 per unit of risk. If you would invest 10,484 in Alphabet Inc Class C on October 25, 2024 and sell it today you would earn a total of 9,474 from holding Alphabet Inc Class C or generate 90.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 97.77% |
| Values | Daily Returns |
Alphabet Inc Class C vs. CG Hi Tech
Performance |
| Timeline |
| Alphabet Class C |
| CG Hi Tech |
Alphabet and CG Hi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet and CG Hi
The main advantage of trading using opposite Alphabet and CG Hi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet position performs unexpectedly, CG Hi 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 CG Hi will offset losses from the drop in CG Hi's long position.The idea behind Alphabet Inc Class C and CG Hi Tech pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CG Hi vs. EV Advanced Material | CG Hi vs. Lotte Data Communication | CG Hi vs. INNOX Advanced Materials | CG Hi vs. RF Materials 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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Global Markets Map Get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| ETF Categories List of ETF categories grouped based on various criteria, such as the investment strategy or type of investments |