Correlation Between GOME Retail and NTT DATA
Can any of the company-specific risk be diversified away by investing in both GOME Retail and NTT DATA at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining GOME Retail and NTT DATA into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between GOME Retail Holdings and NTT DATA , you can compare the effects of market volatilities on GOME Retail and NTT DATA 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 Retail with a short position of NTT DATA. Check out your portfolio center. Please also check ongoing floating volatility patterns of GOME Retail and NTT DATA.
Diversification Opportunities for GOME Retail and NTT DATA
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between GOME and NTT is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding GOME Retail Holdings and NTT DATA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on NTT DATA and GOME Retail 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 Retail Holdings are associated (or correlated) with NTT DATA. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of NTT DATA has no effect on the direction of GOME Retail i.e., GOME Retail and NTT DATA go up and down completely randomly.
Pair Corralation between GOME Retail and NTT DATA
If you would invest 1,770 in NTT DATA on November 7, 2024 and sell it today you would earn a total of 100.00 from holding NTT DATA or generate 5.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GOME Retail Holdings vs. NTT DATA
Performance |
| Timeline |
| GOME Retail Holdings |
| NTT DATA |
GOME Retail and NTT DATA Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GOME Retail and NTT DATA
The main advantage of trading using opposite GOME Retail and NTT DATA positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GOME Retail position performs unexpectedly, NTT DATA 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 NTT DATA will offset losses from the drop in NTT DATA's long position.| GOME Retail vs. HANOVER INSURANCE | GOME Retail vs. Laureate Education | GOME Retail vs. QBE Insurance Group | GOME Retail vs. REVO INSURANCE SPA |
| NTT DATA vs. Khiron Life Sciences | NTT DATA vs. United States Steel | NTT DATA vs. H2O Retailing | NTT DATA vs. Caseys General Stores |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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