Correlation Between Eyebright Medical and Gome Telecom
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By analyzing existing cross correlation between Eyebright Medical Technology and Gome Telecom Equipment, you can compare the effects of market volatilities on Eyebright Medical and Gome Telecom 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 Eyebright Medical with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Eyebright Medical and Gome Telecom.
Diversification Opportunities for Eyebright Medical and Gome Telecom
-0.13 | Correlation Coefficient |
Good diversification
The 3 months correlation between Eyebright and Gome is -0.13. Overlapping area represents the amount of risk that can be diversified away by holding Eyebright Medical Technology and Gome Telecom Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gome Telecom Equipment and Eyebright Medical 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 Eyebright Medical Technology are associated (or correlated) with Gome Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gome Telecom Equipment has no effect on the direction of Eyebright Medical i.e., Eyebright Medical and Gome Telecom go up and down completely randomly.
Pair Corralation between Eyebright Medical and Gome Telecom
Assuming the 90 days trading horizon Eyebright Medical Technology is expected to generate 0.8 times more return on investment than Gome Telecom. However, Eyebright Medical Technology is 1.26 times less risky than Gome Telecom. It trades about 0.03 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.32 per unit of risk. If you would invest 9,485 in Eyebright Medical Technology on October 24, 2024 and sell it today you would earn a total of 351.00 from holding Eyebright Medical Technology or generate 3.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Eyebright Medical Technology vs. Gome Telecom Equipment
Performance |
| Timeline |
| Eyebright Medical |
| Gome Telecom Equipment |
Eyebright Medical and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Eyebright Medical and Gome Telecom
The main advantage of trading using opposite Eyebright Medical and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Eyebright Medical position performs unexpectedly, Gome Telecom 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 Gome Telecom will offset losses from the drop in Gome Telecom's long position.| Eyebright Medical vs. Fujian Newland Computer | Eyebright Medical vs. Nanjing Putian Telecommunications | Eyebright Medical vs. Strait Innovation Internet | Eyebright Medical vs. Nanxing Furniture Machinery |
| Gome Telecom vs. Zotye Automobile Co | Gome Telecom vs. Zhejiang Qianjiang Motorcycle | Gome Telecom vs. Thinkon Semiconductor Jinzhou | Gome Telecom vs. Haima Automobile 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 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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