Correlation Between Gome Telecom and StarPower Semiconductor
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By analyzing existing cross correlation between Gome Telecom Equipment and StarPower Semiconductor, you can compare the effects of market volatilities on Gome Telecom and StarPower Semiconductor 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 StarPower Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and StarPower Semiconductor.
Diversification Opportunities for Gome Telecom and StarPower Semiconductor
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and StarPower is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and StarPower Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on StarPower Semiconductor 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 StarPower Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of StarPower Semiconductor has no effect on the direction of Gome Telecom i.e., Gome Telecom and StarPower Semiconductor go up and down completely randomly.
Pair Corralation between Gome Telecom and StarPower Semiconductor
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.31 times more return on investment than StarPower Semiconductor. However, Gome Telecom is 1.31 times more volatile than StarPower Semiconductor. It trades about -0.07 of its potential returns per unit of risk. StarPower Semiconductor is currently generating about -0.22 per unit of risk. If you would invest 194.00 in Gome Telecom Equipment on September 13, 2024 and sell it today you would lose (11.00) from holding Gome Telecom Equipment or give up 5.67% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. StarPower Semiconductor
Performance |
| Timeline |
| Gome Telecom Equipment |
| StarPower Semiconductor |
Gome Telecom and StarPower Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and StarPower Semiconductor
The main advantage of trading using opposite Gome Telecom and StarPower Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, StarPower Semiconductor 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 StarPower Semiconductor will offset losses from the drop in StarPower Semiconductor's long position.| Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. Agricultural Bank of | Gome Telecom vs. China Construction Bank | Gome Telecom vs. Bank of China |
| StarPower Semiconductor vs. Keda Clean Energy | StarPower Semiconductor vs. Wuhan Yangtze Communication | StarPower Semiconductor vs. Orinko Advanced Plastics | StarPower Semiconductor vs. Xizi Clean Energy |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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