Correlation Between Gotion High and BOE Technology
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By analyzing existing cross correlation between Gotion High tech and BOE Technology Group, you can compare the effects of market volatilities on Gotion High and BOE Technology 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 Gotion High with a short position of BOE Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gotion High and BOE Technology.
Diversification Opportunities for Gotion High and BOE Technology
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Gotion and BOE is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Gotion High tech and BOE Technology Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on BOE Technology Group and Gotion High 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 Gotion High tech are associated (or correlated) with BOE Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of BOE Technology Group has no effect on the direction of Gotion High i.e., Gotion High and BOE Technology go up and down completely randomly.
Pair Corralation between Gotion High and BOE Technology
Assuming the 90 days trading horizon Gotion High tech is expected to under-perform the BOE Technology. In addition to that, Gotion High is 1.63 times more volatile than BOE Technology Group. It trades about -0.36 of its total potential returns per unit of risk. BOE Technology Group is currently generating about 0.18 per unit of volatility. If you would invest 420.00 in BOE Technology Group on September 25, 2024 and sell it today you would earn a total of 16.00 from holding BOE Technology Group or generate 3.81% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Gotion High tech vs. BOE Technology Group
Performance |
Timeline |
Gotion High tech |
BOE Technology Group |
Gotion High and BOE Technology Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Gotion High and BOE Technology
The main advantage of trading using opposite Gotion High and BOE Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gotion High position performs unexpectedly, BOE Technology 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 BOE Technology will offset losses from the drop in BOE Technology's long position.Gotion High vs. Kweichow Moutai Co | Gotion High vs. Contemporary Amperex Technology | Gotion High vs. G bits Network Technology | Gotion High vs. BYD Co Ltd |
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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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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