Correlation Between Chinese Gamer and Grand Plastic
Can any of the company-specific risk be diversified away by investing in both Chinese Gamer and Grand Plastic 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 Chinese Gamer and Grand Plastic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Gamer International and Grand Plastic Technology, you can compare the effects of market volatilities on Chinese Gamer and Grand Plastic 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 Chinese Gamer with a short position of Grand Plastic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Gamer and Grand Plastic.
Diversification Opportunities for Chinese Gamer and Grand Plastic
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Grand is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Gamer International and Grand Plastic Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grand Plastic Technology and Chinese Gamer 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 Chinese Gamer International are associated (or correlated) with Grand Plastic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grand Plastic Technology has no effect on the direction of Chinese Gamer i.e., Chinese Gamer and Grand Plastic go up and down completely randomly.
Pair Corralation between Chinese Gamer and Grand Plastic
Assuming the 90 days trading horizon Chinese Gamer International is expected to generate 0.4 times more return on investment than Grand Plastic. However, Chinese Gamer International is 2.48 times less risky than Grand Plastic. It trades about 0.01 of its potential returns per unit of risk. Grand Plastic Technology is currently generating about -0.04 per unit of risk. If you would invest 4,415 in Chinese Gamer International on September 13, 2024 and sell it today you would earn a total of 10.00 from holding Chinese Gamer International or generate 0.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 100.0% |
Values | Daily Returns |
Chinese Gamer International vs. Grand Plastic Technology
Performance |
Timeline |
Chinese Gamer Intern |
Grand Plastic Technology |
Chinese Gamer and Grand Plastic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chinese Gamer and Grand Plastic
The main advantage of trading using opposite Chinese Gamer and Grand Plastic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Gamer position performs unexpectedly, Grand Plastic 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 Grand Plastic will offset losses from the drop in Grand Plastic's long position.Chinese Gamer vs. YuantaP shares Taiwan Mid Cap | Chinese Gamer vs. YuantaP shares Taiwan Top | Chinese Gamer vs. YuantaP shares Taiwan Electronics | Chinese Gamer vs. Fubon MSCI Taiwan |
Grand Plastic vs. First Hotel Co | Grand Plastic vs. Cowealth Medical Holding | Grand Plastic vs. Formosa International Hotels | Grand Plastic vs. HOYA Resort Hotel |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |