Correlation Between Gome Telecom and SG Micro
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By analyzing existing cross correlation between Gome Telecom Equipment and SG Micro Corp, you can compare the effects of market volatilities on Gome Telecom and SG Micro 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 SG Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and SG Micro.
Diversification Opportunities for Gome Telecom and SG Micro
0.36 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gome and 300661 is 0.36. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and SG Micro Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SG Micro Corp 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 SG Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SG Micro Corp has no effect on the direction of Gome Telecom i.e., Gome Telecom and SG Micro go up and down completely randomly.
Pair Corralation between Gome Telecom and SG Micro
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 0.94 times more return on investment than SG Micro. However, Gome Telecom Equipment is 1.07 times less risky than SG Micro. It trades about 0.18 of its potential returns per unit of risk. SG Micro Corp is currently generating about 0.04 per unit of risk. If you would invest 92.00 in Gome Telecom Equipment on September 5, 2024 and sell it today you would earn a total of 94.00 from holding Gome Telecom Equipment or generate 102.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. SG Micro Corp
Performance |
| Timeline |
| Gome Telecom Equipment |
| SG Micro Corp |
Gome Telecom and SG Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and SG Micro
The main advantage of trading using opposite Gome Telecom and SG Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, SG Micro 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 SG Micro will offset losses from the drop in SG Micro's long position.| Gome Telecom vs. Guangzhou KingTeller Technology | Gome Telecom vs. Hoshine Silicon Ind | Gome Telecom vs. Kingsignal Technology Co | Gome Telecom vs. Kangping Technology Co |
| SG Micro vs. Cultural Investment Holdings | SG Micro vs. Gome Telecom Equipment | SG Micro vs. Bus Online Co | SG Micro 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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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