Correlation Between Gome Telecom and Huasi Agricultural
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By analyzing existing cross correlation between Gome Telecom Equipment and Huasi Agricultural Development, you can compare the effects of market volatilities on Gome Telecom and Huasi Agricultural 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 Huasi Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Huasi Agricultural.
Diversification Opportunities for Gome Telecom and Huasi Agricultural
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Huasi is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Huasi Agricultural Development in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huasi Agricultural 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 Huasi Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huasi Agricultural has no effect on the direction of Gome Telecom i.e., Gome Telecom and Huasi Agricultural go up and down completely randomly.
Pair Corralation between Gome Telecom and Huasi Agricultural
Assuming the 90 days trading horizon Gome Telecom is expected to generate 2.05 times less return on investment than Huasi Agricultural. In addition to that, Gome Telecom is 1.66 times more volatile than Huasi Agricultural Development. It trades about 0.04 of its total potential returns per unit of risk. Huasi Agricultural Development is currently generating about 0.15 per unit of volatility. If you would invest 407.00 in Huasi Agricultural Development on September 1, 2024 and sell it today you would earn a total of 30.00 from holding Huasi Agricultural Development or generate 7.37% 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. Huasi Agricultural Development
Performance |
| Timeline |
| Gome Telecom Equipment |
| Huasi Agricultural |
Gome Telecom and Huasi Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Huasi Agricultural
The main advantage of trading using opposite Gome Telecom and Huasi Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Huasi Agricultural 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 Huasi Agricultural will offset losses from the drop in Huasi Agricultural's long position.| Gome Telecom vs. Broadex Technologies Co | Gome Telecom vs. Changchun Engley Automobile | Gome Telecom vs. Anhui Jianghuai Automobile | Gome Telecom vs. Chongqing Changan Automobile |
| Huasi Agricultural vs. Cultural Investment Holdings | Huasi Agricultural vs. Gome Telecom Equipment | Huasi Agricultural vs. Bus Online Co | Huasi Agricultural 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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