Correlation Between Gome Telecom and Qingdao Choho
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By analyzing existing cross correlation between Gome Telecom Equipment and Qingdao Choho Industrial, you can compare the effects of market volatilities on Gome Telecom and Qingdao Choho 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 Qingdao Choho. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Qingdao Choho.
Diversification Opportunities for Gome Telecom and Qingdao Choho
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Qingdao is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Qingdao Choho Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Choho Industrial 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 Qingdao Choho. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Choho Industrial has no effect on the direction of Gome Telecom i.e., Gome Telecom and Qingdao Choho go up and down completely randomly.
Pair Corralation between Gome Telecom and Qingdao Choho
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Qingdao Choho. In addition to that, Gome Telecom is 1.06 times more volatile than Qingdao Choho Industrial. It trades about -0.01 of its total potential returns per unit of risk. Qingdao Choho Industrial is currently generating about 0.1 per unit of volatility. If you would invest 2,753 in Qingdao Choho Industrial on September 12, 2024 and sell it today you would earn a total of 165.00 from holding Qingdao Choho Industrial or generate 5.99% 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. Qingdao Choho Industrial
Performance |
| Timeline |
| Gome Telecom Equipment |
| Qingdao Choho Industrial |
Gome Telecom and Qingdao Choho Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Qingdao Choho
The main advantage of trading using opposite Gome Telecom and Qingdao Choho positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Qingdao Choho 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 Qingdao Choho will offset losses from the drop in Qingdao Choho's long position.| Gome Telecom vs. Lutian Machinery Co | Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. Bank of China | Gome Telecom vs. Gansu Jiu Steel |
| Qingdao Choho vs. Lutian Machinery Co | Qingdao Choho vs. PetroChina Co Ltd | Qingdao Choho vs. Bank of China | Qingdao Choho vs. Gansu Jiu Steel |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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