Correlation Between Gome Telecom and HanS Laser
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and HanS Laser Tech, you can compare the effects of market volatilities on Gome Telecom and HanS Laser 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 Telecom with a short position of HanS Laser. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and HanS Laser.
Diversification Opportunities for Gome Telecom and HanS Laser
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and HanS is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and HanS Laser Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HanS Laser Tech and Gome Telecom 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 Telecom Equipment are associated (or correlated) with HanS Laser. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HanS Laser Tech has no effect on the direction of Gome Telecom i.e., Gome Telecom and HanS Laser go up and down completely randomly.
Pair Corralation between Gome Telecom and HanS Laser
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the HanS Laser. In addition to that, Gome Telecom is 1.38 times more volatile than HanS Laser Tech. It trades about -0.06 of its total potential returns per unit of risk. HanS Laser Tech is currently generating about 0.01 per unit of volatility. If you would invest 2,640 in HanS Laser Tech on September 3, 2024 and sell it today you would lose (6.00) from holding HanS Laser Tech or give up 0.23% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. HanS Laser Tech
Performance |
| Timeline |
| Gome Telecom Equipment |
| HanS Laser Tech |
Gome Telecom and HanS Laser Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and HanS Laser
The main advantage of trading using opposite Gome Telecom and HanS Laser positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, HanS Laser 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 HanS Laser will offset losses from the drop in HanS Laser's long position.| Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. China Mobile Limited | Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. China Life Insurance |
| HanS Laser vs. Cultural Investment Holdings | HanS Laser vs. Gome Telecom Equipment | HanS Laser vs. Bus Online Co | HanS Laser vs. Holitech Technology Co |
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 Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |