Correlation Between GSI Technology and Cohu
Can any of the company-specific risk be diversified away by investing in both GSI Technology and Cohu 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 GSI Technology and Cohu into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSI Technology and Cohu Inc, you can compare the effects of market volatilities on GSI Technology and Cohu 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 GSI Technology with a short position of Cohu. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSI Technology and Cohu.
Diversification Opportunities for GSI Technology and Cohu
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between GSI and Cohu is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding GSI Technology and Cohu Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cohu Inc and GSI Technology 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 GSI Technology are associated (or correlated) with Cohu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cohu Inc has no effect on the direction of GSI Technology i.e., GSI Technology and Cohu go up and down completely randomly.
Pair Corralation between GSI Technology and Cohu
Given the investment horizon of 90 days GSI Technology is expected to generate 2.41 times more return on investment than Cohu. However, GSI Technology is 2.41 times more volatile than Cohu Inc. It trades about 0.03 of its potential returns per unit of risk. Cohu Inc is currently generating about -0.02 per unit of risk. If you would invest 310.00 in GSI Technology on September 2, 2024 and sell it today you would earn a total of 20.00 from holding GSI Technology or generate 6.45% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
GSI Technology vs. Cohu Inc
Performance |
| Timeline |
| GSI Technology |
| Cohu Inc |
GSI Technology and Cohu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSI Technology and Cohu
The main advantage of trading using opposite GSI Technology and Cohu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSI Technology position performs unexpectedly, Cohu 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 Cohu will offset losses from the drop in Cohu's long position.| GSI Technology vs. SEALSQ Corp | GSI Technology vs. Nano Labs | GSI Technology vs. SemiLEDS | GSI Technology vs. Wisekey International Holding |
| Cohu vs. NXP Semiconductors NV | Cohu vs. GSI Technology | Cohu vs. MaxLinear | Cohu vs. Texas Instruments Incorporated |
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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