Correlation Between Aba Chemicals and GigaDevice SemiconductorBei
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By analyzing existing cross correlation between Aba Chemicals Corp and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Aba Chemicals 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 Aba Chemicals with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Aba Chemicals and GigaDevice SemiconductorBei.
Diversification Opportunities for Aba Chemicals and GigaDevice SemiconductorBei
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Aba and GigaDevice is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Aba Chemicals Corp and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Aba Chemicals 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 Aba Chemicals Corp 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 Aba Chemicals i.e., Aba Chemicals and GigaDevice SemiconductorBei go up and down completely randomly.
Pair Corralation between Aba Chemicals and GigaDevice SemiconductorBei
Assuming the 90 days trading horizon Aba Chemicals Corp is expected to generate 1.67 times more return on investment than GigaDevice SemiconductorBei. However, Aba Chemicals is 1.67 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.16 of its potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.13 per unit of risk. If you would invest 526.00 in Aba Chemicals Corp on September 12, 2024 and sell it today you would earn a total of 288.00 from holding Aba Chemicals Corp or generate 54.75% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Aba Chemicals Corp vs. GigaDevice SemiconductorBeiji
Performance |
Timeline |
Aba Chemicals Corp |
GigaDevice SemiconductorBei |
Aba Chemicals and GigaDevice SemiconductorBei Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Aba Chemicals and GigaDevice SemiconductorBei
The main advantage of trading using opposite Aba Chemicals and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Aba Chemicals 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.Aba Chemicals vs. Semiconductor Manufacturing Electronics | Aba Chemicals vs. GigaDevice SemiconductorBeiji | Aba Chemicals vs. Qinghaihuading Industrial Co | Aba Chemicals vs. MayAir Technology 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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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