Correlation Between Gome Telecom and Uxi Unicomp
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By analyzing existing cross correlation between Gome Telecom Equipment and Uxi Unicomp Technology, you can compare the effects of market volatilities on Gome Telecom and Uxi Unicomp 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 Uxi Unicomp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Uxi Unicomp.
Diversification Opportunities for Gome Telecom and Uxi Unicomp
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Uxi is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Uxi Unicomp Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Uxi Unicomp 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 Uxi Unicomp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Uxi Unicomp Technology has no effect on the direction of Gome Telecom i.e., Gome Telecom and Uxi Unicomp go up and down completely randomly.
Pair Corralation between Gome Telecom and Uxi Unicomp
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 0.94 times more return on investment than Uxi Unicomp. However, Gome Telecom Equipment is 1.06 times less risky than Uxi Unicomp. It trades about -0.03 of its potential returns per unit of risk. Uxi Unicomp Technology is currently generating about -0.04 per unit of risk. If you would invest 295.00 in Gome Telecom Equipment on September 2, 2024 and sell it today you would lose (105.00) from holding Gome Telecom Equipment or give up 35.59% 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. Uxi Unicomp Technology
Performance |
| Timeline |
| Gome Telecom Equipment |
| Uxi Unicomp Technology |
Gome Telecom and Uxi Unicomp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Uxi Unicomp
The main advantage of trading using opposite Gome Telecom and Uxi Unicomp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Uxi Unicomp 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 Uxi Unicomp will offset losses from the drop in Uxi Unicomp's long position.| Gome Telecom vs. Ming Yang Smart | Gome Telecom vs. 159681 | Gome Telecom vs. 159005 | Gome Telecom vs. Loctek Ergonomic Technology |
| Uxi Unicomp vs. New China Life | Uxi Unicomp vs. Ming Yang Smart | Uxi Unicomp vs. 159681 | Uxi Unicomp vs. 159005 |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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