Correlation Between Gome Telecom and Sharetronic Data
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By analyzing existing cross correlation between Gome Telecom Equipment and Sharetronic Data Technology, you can compare the effects of market volatilities on Gome Telecom and Sharetronic Data 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 Sharetronic Data. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Sharetronic Data.
Diversification Opportunities for Gome Telecom and Sharetronic Data
-0.6 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Gome and Sharetronic is -0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Sharetronic Data Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sharetronic Data Tec 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 Sharetronic Data. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sharetronic Data Tec has no effect on the direction of Gome Telecom i.e., Gome Telecom and Sharetronic Data go up and down completely randomly.
Pair Corralation between Gome Telecom and Sharetronic Data
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Sharetronic Data. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 2.09 times less risky than Sharetronic Data. The stock trades about -0.66 of its potential returns per unit of risk. The Sharetronic Data Technology is currently generating about -0.11 of returns per unit of risk over similar time horizon. If you would invest 10,360 in Sharetronic Data Technology on November 2, 2024 and sell it today you would lose (1,232) from holding Sharetronic Data Technology or give up 11.89% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Sharetronic Data Technology
Performance |
| Timeline |
| Gome Telecom Equipment |
| Sharetronic Data Tec |
Gome Telecom and Sharetronic Data Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Sharetronic Data
The main advantage of trading using opposite Gome Telecom and Sharetronic Data positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Sharetronic Data 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 Sharetronic Data will offset losses from the drop in Sharetronic Data's long position.| Gome Telecom vs. Hainan Haiqi Transportation | Gome Telecom vs. Harbin Hatou Investment | Gome Telecom vs. Dazhong Transportation Group | Gome Telecom vs. Fujian Longzhou Transportation |
| Sharetronic Data vs. Hunan Mendale Hometextile | Sharetronic Data vs. Shandong Homey Aquatic | Sharetronic Data vs. Yingde Greatchem Chemicals | Sharetronic Data vs. Shenzhen Noposion Agrochemicals |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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