Correlation Between Goke Microelectronics and RoadMain T
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By analyzing existing cross correlation between Goke Microelectronics Co and RoadMain T Co, you can compare the effects of market volatilities on Goke Microelectronics and RoadMain T 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 Goke Microelectronics with a short position of RoadMain T. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goke Microelectronics and RoadMain T.
Diversification Opportunities for Goke Microelectronics and RoadMain T
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goke and RoadMain is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Goke Microelectronics Co and RoadMain T Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on RoadMain T and Goke Microelectronics 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 Goke Microelectronics Co are associated (or correlated) with RoadMain T. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of RoadMain T has no effect on the direction of Goke Microelectronics i.e., Goke Microelectronics and RoadMain T go up and down completely randomly.
Pair Corralation between Goke Microelectronics and RoadMain T
Assuming the 90 days trading horizon Goke Microelectronics Co is expected to generate 0.79 times more return on investment than RoadMain T. However, Goke Microelectronics Co is 1.26 times less risky than RoadMain T. It trades about 0.13 of its potential returns per unit of risk. RoadMain T Co is currently generating about -0.08 per unit of risk. If you would invest 6,699 in Goke Microelectronics Co on September 30, 2024 and sell it today you would earn a total of 439.00 from holding Goke Microelectronics Co or generate 6.55% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Goke Microelectronics Co vs. RoadMain T Co
Performance |
Timeline |
Goke Microelectronics |
RoadMain T |
Goke Microelectronics and RoadMain T Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Goke Microelectronics and RoadMain T
The main advantage of trading using opposite Goke Microelectronics and RoadMain T positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goke Microelectronics position performs unexpectedly, RoadMain T 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 RoadMain T will offset losses from the drop in RoadMain T's long position.Goke Microelectronics vs. Ming Yang Smart | Goke Microelectronics vs. 159681 | Goke Microelectronics vs. 159005 | Goke Microelectronics vs. Loctek Ergonomic Technology |
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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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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