Correlation Between Gome Telecom and Chengdu Spaceon
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By analyzing existing cross correlation between Gome Telecom Equipment and Chengdu Spaceon Electronics, you can compare the effects of market volatilities on Gome Telecom and Chengdu Spaceon 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 Chengdu Spaceon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Chengdu Spaceon.
Diversification Opportunities for Gome Telecom and Chengdu Spaceon
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Chengdu is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Chengdu Spaceon Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Spaceon Elec 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 Chengdu Spaceon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Spaceon Elec has no effect on the direction of Gome Telecom i.e., Gome Telecom and Chengdu Spaceon go up and down completely randomly.
Pair Corralation between Gome Telecom and Chengdu Spaceon
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Chengdu Spaceon. In addition to that, Gome Telecom is 1.32 times more volatile than Chengdu Spaceon Electronics. It trades about -0.54 of its total potential returns per unit of risk. Chengdu Spaceon Electronics is currently generating about 0.13 per unit of volatility. If you would invest 1,460 in Chengdu Spaceon Electronics on November 5, 2024 and sell it today you would earn a total of 50.00 from holding Chengdu Spaceon Electronics or generate 3.42% 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. Chengdu Spaceon Electronics
Performance |
| Timeline |
| Gome Telecom Equipment |
| Chengdu Spaceon Elec |
Gome Telecom and Chengdu Spaceon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Chengdu Spaceon
The main advantage of trading using opposite Gome Telecom and Chengdu Spaceon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Chengdu Spaceon 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 Chengdu Spaceon will offset losses from the drop in Chengdu Spaceon'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 |
| Chengdu Spaceon vs. Industrial and Commercial | Chengdu Spaceon vs. Kweichow Moutai Co | Chengdu Spaceon vs. Agricultural Bank of | Chengdu Spaceon 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 CEOs Directory module to screen CEOs from public companies around the world.
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