Correlation Between Gome Telecom and Techshine Electronics
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By analyzing existing cross correlation between Gome Telecom Equipment and Techshine Electronics Co, you can compare the effects of market volatilities on Gome Telecom and Techshine Electronics 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 Techshine Electronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Techshine Electronics.
Diversification Opportunities for Gome Telecom and Techshine Electronics
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Techshine is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Techshine Electronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Techshine Electronics 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 Techshine Electronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Techshine Electronics has no effect on the direction of Gome Telecom i.e., Gome Telecom and Techshine Electronics go up and down completely randomly.
Pair Corralation between Gome Telecom and Techshine Electronics
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Techshine Electronics. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.03 times less risky than Techshine Electronics. The stock trades about -0.06 of its potential returns per unit of risk. The Techshine Electronics Co is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,969 in Techshine Electronics Co on September 3, 2024 and sell it today you would earn a total of 57.00 from holding Techshine Electronics Co or generate 2.89% 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. Techshine Electronics Co
Performance |
| Timeline |
| Gome Telecom Equipment |
| Techshine Electronics |
Gome Telecom and Techshine Electronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Techshine Electronics
The main advantage of trading using opposite Gome Telecom and Techshine Electronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Techshine Electronics 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 Techshine Electronics will offset losses from the drop in Techshine Electronics' 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 |
| Techshine Electronics vs. Agricultural Bank of | Techshine Electronics vs. China Construction Bank | Techshine Electronics vs. Postal Savings Bank | Techshine Electronics vs. Bank of Communications |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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