Correlation Between Gome Telecom and Shandong Mining
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Shandong Mining Machinery, you can compare the effects of market volatilities on Gome Telecom and Shandong Mining 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 Shandong Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Shandong Mining.
Diversification Opportunities for Gome Telecom and Shandong Mining
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Shandong is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Shandong Mining Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Mining Machinery 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 Shandong Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Mining Machinery has no effect on the direction of Gome Telecom i.e., Gome Telecom and Shandong Mining go up and down completely randomly.
Pair Corralation between Gome Telecom and Shandong Mining
Assuming the 90 days trading horizon Gome Telecom is expected to generate 3.72 times less return on investment than Shandong Mining. But when comparing it to its historical volatility, Gome Telecom Equipment is 1.15 times less risky than Shandong Mining. It trades about 0.1 of its potential returns per unit of risk. Shandong Mining Machinery is currently generating about 0.33 of returns per unit of risk over similar time horizon. If you would invest 267.00 in Shandong Mining Machinery on September 2, 2024 and sell it today you would earn a total of 93.00 from holding Shandong Mining Machinery or generate 34.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Shandong Mining Machinery
Performance |
| Timeline |
| Gome Telecom Equipment |
| Shandong Mining Machinery |
Gome Telecom and Shandong Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Shandong Mining
The main advantage of trading using opposite Gome Telecom and Shandong Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Shandong Mining 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 Shandong Mining will offset losses from the drop in Shandong Mining's long position.| Gome Telecom vs. Ming Yang Smart | Gome Telecom vs. 159681 | Gome Telecom vs. 159005 | Gome Telecom vs. Loctek Ergonomic Technology |
| Shandong Mining vs. Cultural Investment Holdings | Shandong Mining vs. Gome Telecom Equipment | Shandong Mining vs. Bus Online Co | Shandong Mining 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
Other Complementary Tools
| Alpha Finder Use alpha and beta coefficients to find investment opportunities after accounting for the risk | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |