Correlation Between Lecron Energy and Gome Telecom
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By analyzing existing cross correlation between Lecron Energy Saving and Gome Telecom Equipment, you can compare the effects of market volatilities on Lecron Energy 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 Lecron Energy with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lecron Energy and Gome Telecom.
Diversification Opportunities for Lecron Energy and Gome Telecom
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Lecron and Gome is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Lecron Energy Saving 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 Lecron Energy 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 Lecron Energy Saving 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 Lecron Energy i.e., Lecron Energy and Gome Telecom go up and down completely randomly.
Pair Corralation between Lecron Energy and Gome Telecom
Assuming the 90 days trading horizon Lecron Energy Saving is expected to generate 1.3 times more return on investment than Gome Telecom. However, Lecron Energy is 1.3 times more volatile than Gome Telecom Equipment. It trades about -0.02 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.12 per unit of risk. If you would invest 1,077 in Lecron Energy Saving on October 16, 2024 and sell it today you would lose (561.00) from holding Lecron Energy Saving or give up 52.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Lecron Energy Saving vs. Gome Telecom Equipment
Performance |
| Timeline |
| Lecron Energy Saving |
| Gome Telecom Equipment |
Lecron Energy and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Lecron Energy and Gome Telecom
The main advantage of trading using opposite Lecron Energy and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lecron Energy 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.| Lecron Energy vs. Songz Automobile Air | Lecron Energy vs. Beijing Kingsoft Office | Lecron Energy vs. Sinomach Automobile Co | Lecron Energy vs. Haima Automobile Group |
| Gome Telecom vs. Lecron Energy Saving | Gome Telecom vs. Beijing HuaYuanYiTong Thermal | Gome Telecom vs. North Copper Shanxi | Gome Telecom vs. Shenwu Energy Saving |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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