Correlation Between Gome Telecom and Central Plains
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Central Plains Environment, you can compare the effects of market volatilities on Gome Telecom and Central Plains 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 Gome Telecom with a short position of Central Plains. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Central Plains.
Diversification Opportunities for Gome Telecom and Central Plains
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Central is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Central Plains Environment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central Plains Envir and Gome Telecom 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 Gome Telecom Equipment are associated (or correlated) with Central Plains. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central Plains Envir has no effect on the direction of Gome Telecom i.e., Gome Telecom and Central Plains go up and down completely randomly.
Pair Corralation between Gome Telecom and Central Plains
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Central Plains. In addition to that, Gome Telecom is 1.59 times more volatile than Central Plains Environment. It trades about -0.05 of its total potential returns per unit of risk. Central Plains Environment is currently generating about 0.03 per unit of volatility. If you would invest 739.00 in Central Plains Environment on August 31, 2024 and sell it today you would earn a total of 147.00 from holding Central Plains Environment or generate 19.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Central Plains Environment
Performance |
| Timeline |
| Gome Telecom Equipment |
| Central Plains Envir |
Gome Telecom and Central Plains Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Central Plains
The main advantage of trading using opposite Gome Telecom and Central Plains positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Central Plains 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 Central Plains will offset losses from the drop in Central Plains' long position.| Gome Telecom vs. China State Construction | Gome Telecom vs. China Merchants Shekou | Gome Telecom vs. Huafa Industrial Co | Gome Telecom vs. China International Capital |
| Central Plains vs. Cultural Investment Holdings | Central Plains vs. Gome Telecom Equipment | Central Plains vs. Bus Online Co | Central Plains vs. Holitech 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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |