Correlation Between GSI Technology and East West
Can any of the company-specific risk be diversified away by investing in both GSI Technology and East West 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 East West into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GSI Technology and East West Bancorp, you can compare the effects of market volatilities on GSI Technology and East West 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 East West. Check out your portfolio center. Please also check ongoing floating volatility patterns of GSI Technology and East West.
Diversification Opportunities for GSI Technology and East West
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between GSI and East is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding GSI Technology and East West Bancorp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on East West Bancorp 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 East West. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of East West Bancorp has no effect on the direction of GSI Technology i.e., GSI Technology and East West go up and down completely randomly.
Pair Corralation between GSI Technology and East West
Given the investment horizon of 90 days GSI Technology is expected to under-perform the East West. In addition to that, GSI Technology is 8.08 times more volatile than East West Bancorp. It trades about -0.05 of its total potential returns per unit of risk. East West Bancorp is currently generating about 0.27 per unit of volatility. If you would invest 9,549 in East West Bancorp on November 4, 2024 and sell it today you would earn a total of 748.00 from holding East West Bancorp or generate 7.83% 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. East West Bancorp
Performance |
| Timeline |
| GSI Technology |
| East West Bancorp |
GSI Technology and East West Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GSI Technology and East West
The main advantage of trading using opposite GSI Technology and East West positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GSI Technology position performs unexpectedly, East West 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 East West will offset losses from the drop in East West's long position.| GSI Technology vs. SEALSQ Corp | GSI Technology vs. Nano Labs | GSI Technology vs. SemiLEDS | GSI Technology vs. Wisekey International Holding |
| East West vs. US Bancorp | East West vs. Truist Financial Corp | East West vs. KeyCorp | East West vs. Citizens Financial Group, |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Stocks Directory Find actively traded stocks across global markets |