Correlation Between Gome Telecom and Yuanjie Semiconductor
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By analyzing existing cross correlation between Gome Telecom Equipment and Yuanjie Semiconductor Technology, you can compare the effects of market volatilities on Gome Telecom and Yuanjie 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 Yuanjie Semiconductor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Yuanjie Semiconductor.
Diversification Opportunities for Gome Telecom and Yuanjie Semiconductor
0.3 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Gome and Yuanjie is 0.3. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Yuanjie Semiconductor Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yuanjie 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 Yuanjie Semiconductor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yuanjie Semiconductor has no effect on the direction of Gome Telecom i.e., Gome Telecom and Yuanjie Semiconductor go up and down completely randomly.
Pair Corralation between Gome Telecom and Yuanjie Semiconductor
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 0.75 times more return on investment than Yuanjie Semiconductor. However, Gome Telecom Equipment is 1.33 times less risky than Yuanjie Semiconductor. It trades about 0.0 of its potential returns per unit of risk. Yuanjie Semiconductor Technology is currently generating about -0.12 per unit of risk. If you would invest 185.00 in Gome Telecom Equipment on September 12, 2024 and sell it today you would lose (2.00) from holding Gome Telecom Equipment or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Yuanjie Semiconductor Technolo
Performance |
| Timeline |
| Gome Telecom Equipment |
| Yuanjie Semiconductor |
Gome Telecom and Yuanjie Semiconductor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Yuanjie Semiconductor
The main advantage of trading using opposite Gome Telecom and Yuanjie Semiconductor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Yuanjie 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 Yuanjie Semiconductor will offset losses from the drop in Yuanjie Semiconductor's long position.| Gome Telecom vs. Lutian Machinery Co | Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. Bank of China | Gome Telecom vs. Gansu Jiu Steel |
| Yuanjie Semiconductor vs. Gansu Jiu Steel | Yuanjie Semiconductor vs. Shandong Mining Machinery | Yuanjie Semiconductor vs. Aba Chemicals Corp | Yuanjie Semiconductor vs. BlueFocus Communication Group |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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