Correlation Between Gome Telecom and Kangping Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Kangping Technology Co, you can compare the effects of market volatilities on Gome Telecom and Kangping Technology 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 Kangping Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Kangping Technology.
Diversification Opportunities for Gome Telecom and Kangping Technology
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Kangping is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Kangping Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangping Technology 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 Kangping Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangping Technology has no effect on the direction of Gome Telecom i.e., Gome Telecom and Kangping Technology go up and down completely randomly.
Pair Corralation between Gome Telecom and Kangping Technology
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 2.02 times more return on investment than Kangping Technology. However, Gome Telecom is 2.02 times more volatile than Kangping Technology Co. It trades about 0.18 of its potential returns per unit of risk. Kangping Technology Co is currently generating about 0.28 per unit of risk. If you would invest 168.00 in Gome Telecom Equipment on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Gome Telecom Equipment or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Kangping Technology Co
Performance |
| Timeline |
| Gome Telecom Equipment |
| Kangping Technology |
Gome Telecom and Kangping Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Kangping Technology
The main advantage of trading using opposite Gome Telecom and Kangping Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Kangping Technology 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 Kangping Technology will offset losses from the drop in Kangping Technology's long position.| Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. China Mobile Limited | Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. China Life Insurance |
| Kangping Technology vs. Cultural Investment Holdings | Kangping Technology vs. Gome Telecom Equipment | Kangping Technology vs. Bus Online Co | Kangping Technology 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas |