Correlation Between Gome Telecom and Northern United
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By analyzing existing cross correlation between Gome Telecom Equipment and Northern United Publishing, you can compare the effects of market volatilities on Gome Telecom and Northern United 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 Northern United. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Northern United.
Diversification Opportunities for Gome Telecom and Northern United
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Northern is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Northern United Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northern United Publ 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 Northern United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northern United Publ has no effect on the direction of Gome Telecom i.e., Gome Telecom and Northern United go up and down completely randomly.
Pair Corralation between Gome Telecom and Northern United
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Northern United. In addition to that, Gome Telecom is 1.02 times more volatile than Northern United Publishing. It trades about -0.12 of its total potential returns per unit of risk. Northern United Publishing is currently generating about 0.01 per unit of volatility. If you would invest 669.00 in Northern United Publishing on November 5, 2024 and sell it today you would lose (17.00) from holding Northern United Publishing or give up 2.54% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Northern United Publishing
Performance |
| Timeline |
| Gome Telecom Equipment |
| Northern United Publ |
Gome Telecom and Northern United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Northern United
The main advantage of trading using opposite Gome Telecom and Northern United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Northern United 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 Northern United will offset losses from the drop in Northern United's long position.| Gome Telecom vs. Bengang Steel Plates | Gome Telecom vs. Penyao Environmental Protection | Gome Telecom vs. Guangdong Transtek Medical | Gome Telecom vs. Fangda Special Steel |
| Northern United vs. FSPG Hi Tech Co | Northern United vs. Suzhou Weizhixiang Food | Northern United vs. Dr Peng Telecom | Northern United vs. Zhejiang Huatong Meat |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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