Correlation Between Jinxiandai Information and GigaDevice SemiconductorBei

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Can any of the company-specific risk be diversified away by investing in both Jinxiandai Information and GigaDevice SemiconductorBei 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 Jinxiandai Information and GigaDevice SemiconductorBei into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jinxiandai Information Industry and GigaDevice SemiconductorBeiji, you can compare the effects of market volatilities on Jinxiandai Information 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 Jinxiandai Information with a short position of GigaDevice SemiconductorBei. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jinxiandai Information and GigaDevice SemiconductorBei.

Diversification Opportunities for Jinxiandai Information and GigaDevice SemiconductorBei

JinxiandaiGigaDeviceDiversified AwayJinxiandaiGigaDeviceDiversified Away100%
-0.22
  Correlation Coefficient

Very good diversification

The 3 months correlation between Jinxiandai and GigaDevice is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jinxiandai Information Industr and GigaDevice SemiconductorBeiji in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GigaDevice SemiconductorBei and Jinxiandai Information 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 Jinxiandai Information Industry 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 Jinxiandai Information i.e., Jinxiandai Information and GigaDevice SemiconductorBei go up and down completely randomly.

Pair Corralation between Jinxiandai Information and GigaDevice SemiconductorBei

Assuming the 90 days trading horizon Jinxiandai Information is expected to generate 7.46 times less return on investment than GigaDevice SemiconductorBei. In addition to that, Jinxiandai Information is 1.31 times more volatile than GigaDevice SemiconductorBeiji. It trades about 0.02 of its total potential returns per unit of risk. GigaDevice SemiconductorBeiji is currently generating about 0.18 per unit of volatility. If you would invest  8,992  in GigaDevice SemiconductorBeiji on October 21, 2024 and sell it today you would earn a total of  4,487  from holding GigaDevice SemiconductorBeiji or generate 49.9% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy100.0%
ValuesDaily Returns

Jinxiandai Information Industr  vs.  GigaDevice SemiconductorBeiji

 Performance 
JavaScript chart by amCharts 3.21.15NovDec2025 01020304050
JavaScript chart by amCharts 3.21.15300830 603986
       Timeline  
Jinxiandai Information 

Risk-Adjusted Performance

1 of 100

 
Weak
 
Strong
Weak
Compared to the overall equity markets, risk-adjusted returns on investments in Jinxiandai Information Industry are ranked lower than 1 (%) of all global equities and portfolios over the last 90 days. Despite somewhat strong basic indicators, Jinxiandai Information is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan789101112
GigaDevice SemiconductorBei 

Risk-Adjusted Performance

14 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in GigaDevice SemiconductorBeiji are ranked lower than 14 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, GigaDevice SemiconductorBei sustained solid returns over the last few months and may actually be approaching a breakup point.
JavaScript chart by amCharts 3.21.15NovDecJanDecJan90100110120130

Jinxiandai Information and GigaDevice SemiconductorBei Volatility Contrast

   Predicted Return Density   
JavaScript chart by amCharts 3.21.15-15.52-11.62-7.73-3.830.06493.847.8111.7815.7519.73 0.0100.0150.0200.025
JavaScript chart by amCharts 3.21.15300830 603986
       Returns  

Pair Trading with Jinxiandai Information and GigaDevice SemiconductorBei

The main advantage of trading using opposite Jinxiandai Information and GigaDevice SemiconductorBei positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jinxiandai Information 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.
The idea behind Jinxiandai Information Industry and GigaDevice SemiconductorBeiji 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.
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.

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