Correlation Between Guangdong Silvere and Gome Telecom
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By analyzing existing cross correlation between Guangdong Silvere Sci and Gome Telecom Equipment, you can compare the effects of market volatilities on Guangdong Silvere 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 Guangdong Silvere with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Silvere and Gome Telecom.
Diversification Opportunities for Guangdong Silvere and Gome Telecom
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Guangdong and Gome is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Silvere Sci 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 Guangdong Silvere 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 Guangdong Silvere Sci 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 Guangdong Silvere i.e., Guangdong Silvere and Gome Telecom go up and down completely randomly.
Pair Corralation between Guangdong Silvere and Gome Telecom
Assuming the 90 days trading horizon Guangdong Silvere Sci is expected to generate 1.05 times more return on investment than Gome Telecom. However, Guangdong Silvere is 1.05 times more volatile than Gome Telecom Equipment. It trades about 0.05 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 576.00 in Guangdong Silvere Sci on November 28, 2024 and sell it today you would earn a total of 229.00 from holding Guangdong Silvere Sci or generate 39.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Silvere Sci vs. Gome Telecom Equipment
Performance |
| Timeline |
| Guangdong Silvere Sci |
| Gome Telecom Equipment |
Guangdong Silvere and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Silvere and Gome Telecom
The main advantage of trading using opposite Guangdong Silvere and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Silvere 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.| Guangdong Silvere vs. RoadMain T Co | Guangdong Silvere vs. Southern PublishingMedia Co | Guangdong Silvere vs. Jiangsu Broadcasting Cable | Guangdong Silvere vs. Chongqing Road Bridge |
| Gome Telecom vs. Highbroad Advanced Material | Gome Telecom vs. Zhejiang Daily Media | Gome Telecom vs. NBTM New Materials | Gome Telecom vs. Anhui Xinhua Media |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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