Correlation Between Broadex Technologies and Gome Telecom
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By analyzing existing cross correlation between Broadex Technologies Co and Gome Telecom Equipment, you can compare the effects of market volatilities on Broadex Technologies 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 Broadex Technologies with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Broadex Technologies and Gome Telecom.
Diversification Opportunities for Broadex Technologies and Gome Telecom
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Broadex and Gome is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Broadex Technologies 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 Broadex Technologies 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 Broadex Technologies 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 Broadex Technologies i.e., Broadex Technologies and Gome Telecom go up and down completely randomly.
Pair Corralation between Broadex Technologies and Gome Telecom
Assuming the 90 days trading horizon Broadex Technologies Co is expected to generate 1.37 times more return on investment than Gome Telecom. However, Broadex Technologies is 1.37 times more volatile than Gome Telecom Equipment. It trades about 0.03 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.06 per unit of risk. If you would invest 1,819 in Broadex Technologies Co on September 3, 2024 and sell it today you would earn a total of 442.00 from holding Broadex Technologies Co or generate 24.3% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Broadex Technologies Co vs. Gome Telecom Equipment
Performance |
| Timeline |
| Broadex Technologies |
| Gome Telecom Equipment |
Broadex Technologies and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Broadex Technologies and Gome Telecom
The main advantage of trading using opposite Broadex Technologies and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Broadex Technologies 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.| Broadex Technologies vs. Cultural Investment Holdings | Broadex Technologies vs. Gome Telecom Equipment | Broadex Technologies vs. Bus Online Co | Broadex Technologies vs. Holitech Technology Co |
| Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. China Mobile Limited | Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. China Life Insurance |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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