Correlation Between Tjk Machinery and Gome Telecom
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By analyzing existing cross correlation between Tjk Machinery Tianjin and Gome Telecom Equipment, you can compare the effects of market volatilities on Tjk Machinery 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 Tjk Machinery with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tjk Machinery and Gome Telecom.
Diversification Opportunities for Tjk Machinery and Gome Telecom
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tjk and Gome is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tjk Machinery Tianjin 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 Tjk Machinery 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 Tjk Machinery Tianjin 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 Tjk Machinery i.e., Tjk Machinery and Gome Telecom go up and down completely randomly.
Pair Corralation between Tjk Machinery and Gome Telecom
Assuming the 90 days trading horizon Tjk Machinery Tianjin is expected to generate 0.9 times more return on investment than Gome Telecom. However, Tjk Machinery Tianjin is 1.11 times less risky than Gome Telecom. It trades about 0.12 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about 0.01 per unit of risk. If you would invest 1,285 in Tjk Machinery Tianjin on August 31, 2024 and sell it today you would earn a total of 105.00 from holding Tjk Machinery Tianjin or generate 8.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tjk Machinery Tianjin vs. Gome Telecom Equipment
Performance |
| Timeline |
| Tjk Machinery Tianjin |
| Gome Telecom Equipment |
Tjk Machinery and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tjk Machinery and Gome Telecom
The main advantage of trading using opposite Tjk Machinery and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tjk Machinery 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.| Tjk Machinery vs. Cultural Investment Holdings | Tjk Machinery vs. Gome Telecom Equipment | Tjk Machinery vs. Bus Online Co | Tjk Machinery vs. Holitech Technology Co |
| Gome Telecom vs. China State Construction | Gome Telecom vs. China Merchants Shekou | Gome Telecom vs. Huafa Industrial Co | Gome Telecom vs. China International Capital |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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