Correlation Between Gome Telecom and Niutech Environment
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By analyzing existing cross correlation between Gome Telecom Equipment and Niutech Environment Technology, you can compare the effects of market volatilities on Gome Telecom and Niutech Environment 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 Niutech Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Niutech Environment.
Diversification Opportunities for Gome Telecom and Niutech Environment
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Niutech is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Niutech Environment Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Niutech Environment 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 Niutech Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Niutech Environment has no effect on the direction of Gome Telecom i.e., Gome Telecom and Niutech Environment go up and down completely randomly.
Pair Corralation between Gome Telecom and Niutech Environment
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Niutech Environment. In addition to that, Gome Telecom is 1.09 times more volatile than Niutech Environment Technology. It trades about -0.06 of its total potential returns per unit of risk. Niutech Environment Technology is currently generating about 0.0 per unit of volatility. If you would invest 1,827 in Niutech Environment Technology on September 2, 2024 and sell it today you would lose (418.00) from holding Niutech Environment Technology or give up 22.88% 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. Niutech Environment Technology
Performance |
| Timeline |
| Gome Telecom Equipment |
| Niutech Environment |
Gome Telecom and Niutech Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Niutech Environment
The main advantage of trading using opposite Gome Telecom and Niutech Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Niutech Environment 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 Niutech Environment will offset losses from the drop in Niutech Environment's long position.| Gome Telecom vs. Ming Yang Smart | Gome Telecom vs. 159681 | Gome Telecom vs. 159005 | Gome Telecom vs. Loctek Ergonomic Technology |
| Niutech Environment vs. Cultural Investment Holdings | Niutech Environment vs. Gome Telecom Equipment | Niutech Environment vs. Bus Online Co | Niutech Environment vs. Holitech Technology 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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