Correlation Between Kingsignal Technology and Gome Telecom
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By analyzing existing cross correlation between Kingsignal Technology Co and Gome Telecom Equipment, you can compare the effects of market volatilities on Kingsignal Technology 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 Kingsignal Technology with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Kingsignal Technology and Gome Telecom.
Diversification Opportunities for Kingsignal Technology and Gome Telecom
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Kingsignal and Gome is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Kingsignal Technology Co 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 Kingsignal Technology 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 Kingsignal Technology Co 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 Kingsignal Technology i.e., Kingsignal Technology and Gome Telecom go up and down completely randomly.
Pair Corralation between Kingsignal Technology and Gome Telecom
Assuming the 90 days trading horizon Kingsignal Technology is expected to generate 1.51 times less return on investment than Gome Telecom. In addition to that, Kingsignal Technology is 1.25 times more volatile than Gome Telecom Equipment. It trades about 0.09 of its total potential returns per unit of risk. Gome Telecom Equipment is currently generating about 0.18 per unit of volatility. If you would invest 92.00 in Gome Telecom Equipment on September 5, 2024 and sell it today you would earn a total of 94.00 from holding Gome Telecom Equipment or generate 102.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Kingsignal Technology Co vs. Gome Telecom Equipment
Performance |
| Timeline |
| Kingsignal Technology |
| Gome Telecom Equipment |
Kingsignal Technology and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Kingsignal Technology and Gome Telecom
The main advantage of trading using opposite Kingsignal Technology and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Kingsignal Technology 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.| Kingsignal Technology vs. Industrial and Commercial | Kingsignal Technology vs. China Construction Bank | Kingsignal Technology vs. Bank of China | Kingsignal Technology vs. Agricultural Bank of |
| Gome Telecom vs. Guangzhou KingTeller Technology | Gome Telecom vs. Hoshine Silicon Ind | Gome Telecom vs. Kingsignal Technology Co | Gome Telecom vs. Kangping Technology Co |
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 Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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