Correlation Between Gome Telecom and Zoje Resources
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By analyzing existing cross correlation between Gome Telecom Equipment and Zoje Resources Investment, you can compare the effects of market volatilities on Gome Telecom and Zoje Resources 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 Zoje Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Zoje Resources.
Diversification Opportunities for Gome Telecom and Zoje Resources
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Zoje is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Zoje Resources Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zoje Resources Investment 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 Zoje Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zoje Resources Investment has no effect on the direction of Gome Telecom i.e., Gome Telecom and Zoje Resources go up and down completely randomly.
Pair Corralation between Gome Telecom and Zoje Resources
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 0.95 times more return on investment than Zoje Resources. However, Gome Telecom Equipment is 1.05 times less risky than Zoje Resources. It trades about 0.1 of its potential returns per unit of risk. Zoje Resources Investment is currently generating about 0.1 per unit of risk. If you would invest 177.00 in Gome Telecom Equipment on September 2, 2024 and sell it today you would earn a total of 13.00 from holding Gome Telecom Equipment or generate 7.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Zoje Resources Investment
Performance |
| Timeline |
| Gome Telecom Equipment |
| Zoje Resources Investment |
Gome Telecom and Zoje Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Zoje Resources
The main advantage of trading using opposite Gome Telecom and Zoje Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Zoje Resources 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 Zoje Resources will offset losses from the drop in Zoje Resources' long position.| Gome Telecom vs. Ming Yang Smart | Gome Telecom vs. 159681 | Gome Telecom vs. 159005 | Gome Telecom vs. Loctek Ergonomic Technology |
| Zoje Resources vs. New China Life | Zoje Resources vs. Ming Yang Smart | Zoje Resources vs. 159681 | Zoje Resources vs. 159005 |
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 Stocks Directory module to find actively traded stocks across global markets.
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