Correlation Between Gome Telecom and Sinocelltech
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By analyzing existing cross correlation between Gome Telecom Equipment and Sinocelltech Group, you can compare the effects of market volatilities on Gome Telecom and Sinocelltech 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 Sinocelltech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Sinocelltech.
Diversification Opportunities for Gome Telecom and Sinocelltech
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Sinocelltech is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Sinocelltech Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinocelltech Group 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 Sinocelltech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinocelltech Group has no effect on the direction of Gome Telecom i.e., Gome Telecom and Sinocelltech go up and down completely randomly.
Pair Corralation between Gome Telecom and Sinocelltech
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Sinocelltech. In addition to that, Gome Telecom is 1.57 times more volatile than Sinocelltech Group. It trades about -1.36 of its total potential returns per unit of risk. Sinocelltech Group is currently generating about -0.36 per unit of volatility. If you would invest 3,896 in Sinocelltech Group on October 7, 2024 and sell it today you would lose (410.00) from holding Sinocelltech Group or give up 10.52% 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. Sinocelltech Group
Performance |
| Timeline |
| Gome Telecom Equipment |
| Sinocelltech Group |
Gome Telecom and Sinocelltech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Sinocelltech
The main advantage of trading using opposite Gome Telecom and Sinocelltech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Sinocelltech 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 Sinocelltech will offset losses from the drop in Sinocelltech's long position.| Gome Telecom vs. Eyebright Medical Technology | Gome Telecom vs. Shanghai Sanyou Medical | Gome Telecom vs. Nanjing Vishee Medical | Gome Telecom vs. Tinavi Medical Technologies |
| Sinocelltech vs. Nanjing Putian Telecommunications | Sinocelltech vs. Tianjin Realty Development | Sinocelltech vs. Zhongtong Guomai Communication | Sinocelltech vs. Gansu Jiu Steel |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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