Correlation Between BlueFocus Communication and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between BlueFocus Communication Group and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on BlueFocus Communication and GigaDevice SemiconductorBei 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 BlueFocus Communication with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of BlueFocus Communication and GigaDevice SemiconductorBei.
Diversification Opportunities for BlueFocus Communication and GigaDevice SemiconductorBei
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between BlueFocus and GigaDevice is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding BlueFocus Communication Group and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and BlueFocus Communication 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 BlueFocus Communication Group are associated (or correlated) with GigaDevice SemiconductorBei. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GigaDevice SemiconductorBei has no effect on the direction of BlueFocus Communication i.e., BlueFocus Communication and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between BlueFocus Communication and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon BlueFocus Communication Group is expected to generate 1.87 times more return on investment than GigaDevice SemiconductorBei. However, BlueFocus Communication is 1.87 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.25 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.15 per unit of risk. If you would invest 525.00 in BlueFocus Communication Group on September 13, 2024 and sell it today you would earn a total of 628.00 from holding BlueFocus Communication Group or generate 119.62% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
BlueFocus Communication Group vs. GigaDevice SemiconductorBeiji
Performance |
Timeline |
BlueFocus Communication |
GigaDevice SemiconductorBei |
BlueFocus Communication and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with BlueFocus Communication and GigaDevice SemiconductorBei
The main advantage of trading using opposite BlueFocus Communication and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if BlueFocus Communication position performs unexpectedly, GigaDevice SemiconductorBei 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 GigaDevice SemiconductorBei will offset losses from the drop in GigaDevice SemiconductorBei's long position.BlueFocus Communication vs. BYD Co Ltd | BlueFocus Communication vs. China Mobile Limited | BlueFocus Communication vs. Agricultural Bank of | BlueFocus Communication vs. Industrial and Commercial |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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