Correlation Between Gome Telecom and Duzhe Publishing
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By analyzing existing cross correlation between Gome Telecom Equipment and Duzhe Publishing Media, you can compare the effects of market volatilities on Gome Telecom and Duzhe Publishing 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 Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Duzhe Publishing.
Diversification Opportunities for Gome Telecom and Duzhe Publishing
0.32 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gome and Duzhe is 0.32. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media 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 Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of Gome Telecom i.e., Gome Telecom and Duzhe Publishing go up and down completely randomly.
Pair Corralation between Gome Telecom and Duzhe Publishing
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Duzhe Publishing. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.05 times less risky than Duzhe Publishing. The stock trades about -0.54 of its potential returns per unit of risk. The Duzhe Publishing Media is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 566.00 in Duzhe Publishing Media on November 5, 2024 and sell it today you would earn a total of 45.00 from holding Duzhe Publishing Media or generate 7.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Duzhe Publishing Media
Performance |
| Timeline |
| Gome Telecom Equipment |
| Duzhe Publishing Media |
Gome Telecom and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Duzhe Publishing
The main advantage of trading using opposite Gome Telecom and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing'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 |
| Duzhe Publishing vs. Eastroc Beverage Group | Duzhe Publishing vs. Hangzhou Arcvideo Technology | Duzhe Publishing vs. Tongyu Communication | Duzhe Publishing vs. Hainan Airlines 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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