Correlation Between North Copper and Gome Telecom
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By analyzing existing cross correlation between North Copper Shanxi and Gome Telecom Equipment, you can compare the effects of market volatilities on North Copper and Gome Telecom 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 North Copper with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of North Copper and Gome Telecom.
Diversification Opportunities for North Copper and Gome Telecom
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between North and Gome is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding North Copper Shanxi and Gome Telecom Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gome Telecom Equipment and North Copper 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 North Copper Shanxi are associated (or correlated) with Gome Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gome Telecom Equipment has no effect on the direction of North Copper i.e., North Copper and Gome Telecom go up and down completely randomly.
Pair Corralation between North Copper and Gome Telecom
Assuming the 90 days trading horizon North Copper Shanxi is expected to generate 0.98 times more return on investment than Gome Telecom. However, North Copper Shanxi is 1.02 times less risky than Gome Telecom. It trades about 0.04 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.12 per unit of risk. If you would invest 614.00 in North Copper Shanxi on October 16, 2024 and sell it today you would earn a total of 335.00 from holding North Copper Shanxi or generate 54.56% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
North Copper Shanxi vs. Gome Telecom Equipment
Performance |
| Timeline |
| North Copper Shanxi |
| Gome Telecom Equipment |
North Copper and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with North Copper and Gome Telecom
The main advantage of trading using opposite North Copper and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if North Copper position performs unexpectedly, Gome Telecom 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 Gome Telecom will offset losses from the drop in Gome Telecom's long position.| North Copper vs. Ningxia Younglight Chemicals | North Copper vs. Zhongyin Babi Food | North Copper vs. Xinxiang Chemical Fiber | North Copper vs. New Hope Dairy |
| Gome Telecom vs. Lecron Energy Saving | Gome Telecom vs. Beijing HuaYuanYiTong Thermal | Gome Telecom vs. North Copper Shanxi | Gome Telecom vs. Shenwu Energy Saving |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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