Correlation Between Gome Telecom and Biwin Storage
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By analyzing existing cross correlation between Gome Telecom Equipment and Biwin Storage Technology, you can compare the effects of market volatilities on Gome Telecom and Biwin Storage 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 Biwin Storage. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Biwin Storage.
Diversification Opportunities for Gome Telecom and Biwin Storage
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gome and Biwin is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Biwin Storage Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Biwin Storage Technology 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 Biwin Storage. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Biwin Storage Technology has no effect on the direction of Gome Telecom i.e., Gome Telecom and Biwin Storage go up and down completely randomly.
Pair Corralation between Gome Telecom and Biwin Storage
Assuming the 90 days trading horizon Gome Telecom is expected to generate 13.89 times less return on investment than Biwin Storage. But when comparing it to its historical volatility, Gome Telecom Equipment is 1.53 times less risky than Biwin Storage. It trades about 0.01 of its potential returns per unit of risk. Biwin Storage Technology is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 4,228 in Biwin Storage Technology on September 12, 2024 and sell it today you would earn a total of 1,655 from holding Biwin Storage Technology or generate 39.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 98.28% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Biwin Storage Technology
Performance |
| Timeline |
| Gome Telecom Equipment |
| Biwin Storage Technology |
Gome Telecom and Biwin Storage Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Biwin Storage
The main advantage of trading using opposite Gome Telecom and Biwin Storage positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Biwin Storage 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 Biwin Storage will offset losses from the drop in Biwin Storage's long position.| Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. Agricultural Bank of | Gome Telecom vs. China Construction Bank | Gome Telecom vs. Bank of China |
| Biwin Storage vs. Nanjing Putian Telecommunications | Biwin Storage vs. Tianjin Realty Development | Biwin Storage vs. Kangyue Technology Co | Biwin Storage vs. Shenzhen Hifuture Electric |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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