Correlation Between Gome Telecom and Hang Xiao
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By analyzing existing cross correlation between Gome Telecom Equipment and Hang Xiao Steel, you can compare the effects of market volatilities on Gome Telecom and Hang Xiao 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 Hang Xiao. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Hang Xiao.
Diversification Opportunities for Gome Telecom and Hang Xiao
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Hang is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Hang Xiao Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hang Xiao Steel 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 Hang Xiao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hang Xiao Steel has no effect on the direction of Gome Telecom i.e., Gome Telecom and Hang Xiao go up and down completely randomly.
Pair Corralation between Gome Telecom and Hang Xiao
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.61 times more return on investment than Hang Xiao. However, Gome Telecom is 1.61 times more volatile than Hang Xiao Steel. It trades about 0.18 of its potential returns per unit of risk. Hang Xiao Steel is currently generating about 0.06 per unit of risk. If you would invest 168.00 in Gome Telecom Equipment on September 4, 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 | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Hang Xiao Steel
Performance |
| Timeline |
| Gome Telecom Equipment |
| Hang Xiao Steel |
Gome Telecom and Hang Xiao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Hang Xiao
The main advantage of trading using opposite Gome Telecom and Hang Xiao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Hang Xiao 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 Hang Xiao will offset losses from the drop in Hang Xiao's long position.| Gome Telecom vs. Biwin Storage Technology | Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. China Construction Bank |
| Hang Xiao vs. Sichuan Fulin Transportation | Hang Xiao vs. Miracll Chemicals Co | Hang Xiao vs. Huaxia Fund Management | Hang Xiao vs. Shaanxi Meineng Clean |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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