Correlation Between Gome Telecom and Xiangyu Medical
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By analyzing existing cross correlation between Gome Telecom Equipment and Xiangyu Medical Co, you can compare the effects of market volatilities on Gome Telecom and Xiangyu Medical 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 Xiangyu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Xiangyu Medical.
Diversification Opportunities for Gome Telecom and Xiangyu Medical
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Xiangyu is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Xiangyu Medical Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xiangyu Medical 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 Xiangyu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xiangyu Medical has no effect on the direction of Gome Telecom i.e., Gome Telecom and Xiangyu Medical go up and down completely randomly.
Pair Corralation between Gome Telecom and Xiangyu Medical
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Xiangyu Medical. In addition to that, Gome Telecom is 1.03 times more volatile than Xiangyu Medical Co. It trades about -0.04 of its total potential returns per unit of risk. Xiangyu Medical Co is currently generating about 0.0 per unit of volatility. If you would invest 3,820 in Xiangyu Medical Co on September 12, 2024 and sell it today you would lose (487.00) from holding Xiangyu Medical Co or give up 12.75% 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. Xiangyu Medical Co
Performance |
| Timeline |
| Gome Telecom Equipment |
| Xiangyu Medical |
Gome Telecom and Xiangyu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Xiangyu Medical
The main advantage of trading using opposite Gome Telecom and Xiangyu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Xiangyu Medical 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 Xiangyu Medical will offset losses from the drop in Xiangyu Medical'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 |
| Xiangyu Medical vs. Cultural Investment Holdings | Xiangyu Medical vs. Gome Telecom Equipment | Xiangyu Medical vs. Holitech Technology Co | Xiangyu Medical vs. Zotye Automobile 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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