Correlation Between Gome Telecom and Chongqing Sulian
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Chongqing Sulian Plastic, you can compare the effects of market volatilities on Gome Telecom and Chongqing Sulian 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 Chongqing Sulian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Chongqing Sulian.
Diversification Opportunities for Gome Telecom and Chongqing Sulian
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Chongqing is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Chongqing Sulian Plastic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Sulian Plastic 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 Chongqing Sulian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Sulian Plastic has no effect on the direction of Gome Telecom i.e., Gome Telecom and Chongqing Sulian go up and down completely randomly.
Pair Corralation between Gome Telecom and Chongqing Sulian
Assuming the 90 days trading horizon Gome Telecom is expected to generate 1.04 times less return on investment than Chongqing Sulian. But when comparing it to its historical volatility, Gome Telecom Equipment is 1.25 times less risky than Chongqing Sulian. It trades about 0.14 of its potential returns per unit of risk. Chongqing Sulian Plastic is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 2,581 in Chongqing Sulian Plastic on September 5, 2024 and sell it today you would earn a total of 269.00 from holding Chongqing Sulian Plastic or generate 10.42% 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. Chongqing Sulian Plastic
Performance |
| Timeline |
| Gome Telecom Equipment |
| Chongqing Sulian Plastic |
Gome Telecom and Chongqing Sulian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Chongqing Sulian
The main advantage of trading using opposite Gome Telecom and Chongqing Sulian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Chongqing Sulian 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 Chongqing Sulian will offset losses from the drop in Chongqing Sulian'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 |
| Chongqing Sulian vs. Cultural Investment Holdings | Chongqing Sulian vs. Gome Telecom Equipment | Chongqing Sulian vs. Bus Online Co | Chongqing Sulian 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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |