Correlation Between Gome Telecom and Guangdong Shenglu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Gome Telecom and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Guangdong Shenglu.
Diversification Opportunities for Gome Telecom and Guangdong Shenglu
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gome and Guangdong is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Gome Telecom i.e., Gome Telecom and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Gome Telecom and Guangdong Shenglu
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Guangdong Shenglu. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.56 times less risky than Guangdong Shenglu. The stock trades about -0.54 of its potential returns per unit of risk. The Guangdong Shenglu Telecommunication is currently generating about -0.1 of returns per unit of risk over similar time horizon. If you would invest 615.00 in Guangdong Shenglu Telecommunication on November 5, 2024 and sell it today you would lose (40.00) from holding Guangdong Shenglu Telecommunication or give up 6.5% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Gome Telecom Equipment |
| Guangdong Shenglu |
Gome Telecom and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Guangdong Shenglu
The main advantage of trading using opposite Gome Telecom and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Gome Telecom vs. Bengang Steel Plates | Gome Telecom vs. Penyao Environmental Protection | Gome Telecom vs. Guangdong Transtek Medical | Gome Telecom vs. Fangda Special Steel |
| Guangdong Shenglu vs. Industrial and Commercial | Guangdong Shenglu vs. Kweichow Moutai Co | Guangdong Shenglu vs. Agricultural Bank of | Guangdong Shenglu vs. China Mobile Limited |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |