Correlation Between V V and Goertek
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By analyzing existing cross correlation between V V Food and Goertek, you can compare the effects of market volatilities on V V and Goertek 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 V V with a short position of Goertek. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Goertek.
Diversification Opportunities for V V and Goertek
Weak diversification
The 3 months correlation between 600300 and Goertek is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Goertek in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goertek and V V 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 V V Food are associated (or correlated) with Goertek. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goertek has no effect on the direction of V V i.e., V V and Goertek go up and down completely randomly.
Pair Corralation between V V and Goertek
Assuming the 90 days trading horizon V V is expected to generate 1.03 times less return on investment than Goertek. But when comparing it to its historical volatility, V V Food is 1.34 times less risky than Goertek. It trades about 0.26 of its potential returns per unit of risk. Goertek is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,833 in Goertek on September 12, 2024 and sell it today you would earn a total of 800.00 from holding Goertek or generate 43.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Goertek
Performance |
| Timeline |
| V V Food |
| Goertek |
V V and Goertek Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Goertek
The main advantage of trading using opposite V V and Goertek positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Goertek 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 Goertek will offset losses from the drop in Goertek's long position.| V V vs. Nanjing Putian Telecommunications | V V vs. Tianjin Realty Development | V V vs. Kangyue Technology Co | V V vs. Shenzhen Hifuture Electric |
| Goertek vs. Harvest Fund Management | Goertek vs. Fuda Alloy Materials | Goertek vs. King Strong New Material | Goertek vs. Innovative Medical Management |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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