Correlation Between Gome Telecom and Zotye Automobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Zotye Automobile Co, you can compare the effects of market volatilities on Gome Telecom and Zotye Automobile 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 Zotye Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Zotye Automobile.
Diversification Opportunities for Gome Telecom and Zotye Automobile
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Zotye is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Zotye Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zotye Automobile 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 Zotye Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zotye Automobile has no effect on the direction of Gome Telecom i.e., Gome Telecom and Zotye Automobile go up and down completely randomly.
Pair Corralation between Gome Telecom and Zotye Automobile
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Zotye Automobile. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.23 times less risky than Zotye Automobile. The stock trades about -0.12 of its potential returns per unit of risk. The Zotye Automobile Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 441.00 in Zotye Automobile Co on November 2, 2024 and sell it today you would lose (237.00) from holding Zotye Automobile Co or give up 53.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Zotye Automobile Co
Performance |
| Timeline |
| Gome Telecom Equipment |
| Zotye Automobile |
Gome Telecom and Zotye Automobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Zotye Automobile
The main advantage of trading using opposite Gome Telecom and Zotye Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Zotye Automobile 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 Zotye Automobile will offset losses from the drop in Zotye Automobile's long position.| Gome Telecom vs. Shenzhen Shenbao Industrial | Gome Telecom vs. Ningbo Fujia Industrial | Gome Telecom vs. Semiconductor Manufacturing Intl | Gome Telecom vs. Guangzhou Haozhi Industrial |
| Zotye Automobile vs. China Asset Management | Zotye Automobile vs. Jiangsu Yanghe Brewery | Zotye Automobile vs. Linkage Software Co | Zotye Automobile vs. Gansu Huangtai Wine marketing |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Stocks Directory Find actively traded stocks across global markets |