Correlation Between Gome Telecom and Xizi Clean
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By analyzing existing cross correlation between Gome Telecom Equipment and Xizi Clean Energy, you can compare the effects of market volatilities on Gome Telecom and Xizi Clean 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 Xizi Clean. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Xizi Clean.
Diversification Opportunities for Gome Telecom and Xizi Clean
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Xizi is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Xizi Clean Energy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xizi Clean Energy 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 Xizi Clean. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xizi Clean Energy has no effect on the direction of Gome Telecom i.e., Gome Telecom and Xizi Clean go up and down completely randomly.
Pair Corralation between Gome Telecom and Xizi Clean
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.9 times more return on investment than Xizi Clean. However, Gome Telecom is 1.9 times more volatile than Xizi Clean Energy. It trades about 0.01 of its potential returns per unit of risk. Xizi Clean Energy is currently generating about -0.17 per unit of risk. If you would invest 196.00 in Gome Telecom Equipment on August 31, 2024 and sell it today you would lose (1.00) from holding Gome Telecom Equipment or give up 0.51% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Xizi Clean Energy
Performance |
| Timeline |
| Gome Telecom Equipment |
| Xizi Clean Energy |
Gome Telecom and Xizi Clean Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Xizi Clean
The main advantage of trading using opposite Gome Telecom and Xizi Clean positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Xizi Clean 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 Xizi Clean will offset losses from the drop in Xizi Clean's 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 |
| Xizi Clean vs. Cultural Investment Holdings | Xizi Clean vs. Gome Telecom Equipment | Xizi Clean vs. Bus Online Co | Xizi Clean 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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