Correlation Between Goertek and China Asset
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By analyzing existing cross correlation between Goertek and China Asset Management, you can compare the effects of market volatilities on Goertek and China Asset 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 Goertek with a short position of China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goertek and China Asset.
Diversification Opportunities for Goertek and China Asset
0.04 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Goertek and China is 0.04. Overlapping area represents the amount of risk that can be diversified away by holding Goertek and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management and Goertek 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 Goertek are associated (or correlated) with China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Goertek i.e., Goertek and China Asset go up and down completely randomly.
Pair Corralation between Goertek and China Asset
Assuming the 90 days trading horizon Goertek is expected to generate 3.15 times more return on investment than China Asset. However, Goertek is 3.15 times more volatile than China Asset Management. It trades about 0.05 of its potential returns per unit of risk. China Asset Management is currently generating about 0.06 per unit of risk. If you would invest 1,703 in Goertek on September 12, 2024 and sell it today you would earn a total of 930.00 from holding Goertek or generate 54.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goertek vs. China Asset Management
Performance |
| Timeline |
| Goertek |
| China Asset Management |
Goertek and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goertek and China Asset
The main advantage of trading using opposite Goertek and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goertek position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Goertek vs. China Asset Management | Goertek vs. State Grid InformationCommunication | Goertek vs. Cicc Fund Management | Goertek vs. Nanjing Putian Telecommunications |
| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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