Correlation Between Gome Telecom and Anhui Transport
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By analyzing existing cross correlation between Gome Telecom Equipment and Anhui Transport Consulting, you can compare the effects of market volatilities on Gome Telecom and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Anhui Transport.
Diversification Opportunities for Gome Telecom and Anhui Transport
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Anhui is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of Gome Telecom i.e., Gome Telecom and Anhui Transport go up and down completely randomly.
Pair Corralation between Gome Telecom and Anhui Transport
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Anhui Transport. In addition to that, Gome Telecom is 1.2 times more volatile than Anhui Transport Consulting. It trades about -0.06 of its total potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.03 per unit of volatility. If you would invest 756.00 in Anhui Transport Consulting on September 2, 2024 and sell it today you would earn a total of 227.00 from holding Anhui Transport Consulting or generate 30.03% 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. Anhui Transport Consulting
Performance |
| Timeline |
| Gome Telecom Equipment |
| Anhui Transport Cons |
Gome Telecom and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Anhui Transport
The main advantage of trading using opposite Gome Telecom and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport's long position.| Gome Telecom vs. Ming Yang Smart | Gome Telecom vs. 159681 | Gome Telecom vs. 159005 | Gome Telecom vs. Loctek Ergonomic Technology |
| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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