Correlation Between Gome Telecom and HeNan Splendor
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and HeNan Splendor Science, you can compare the effects of market volatilities on Gome Telecom and HeNan Splendor 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 HeNan Splendor. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and HeNan Splendor.
Diversification Opportunities for Gome Telecom and HeNan Splendor
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between Gome and HeNan is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and HeNan Splendor Science in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HeNan Splendor Science 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 HeNan Splendor. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HeNan Splendor Science has no effect on the direction of Gome Telecom i.e., Gome Telecom and HeNan Splendor go up and down completely randomly.
Pair Corralation between Gome Telecom and HeNan Splendor
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the HeNan Splendor. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.6 times less risky than HeNan Splendor. The stock trades about -0.81 of its potential returns per unit of risk. The HeNan Splendor Science is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 963.00 in HeNan Splendor Science on October 26, 2024 and sell it today you would earn a total of 74.00 from holding HeNan Splendor Science or generate 7.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. HeNan Splendor Science
Performance |
| Timeline |
| Gome Telecom Equipment |
| HeNan Splendor Science |
Gome Telecom and HeNan Splendor Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and HeNan Splendor
The main advantage of trading using opposite Gome Telecom and HeNan Splendor positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, HeNan Splendor 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 HeNan Splendor will offset losses from the drop in HeNan Splendor's long position.| Gome Telecom vs. Chison Medical Technologies | Gome Telecom vs. Chinese Universe Publishing | Gome Telecom vs. Touchstone International Medical | Gome Telecom vs. Jiangsu Phoenix Publishing |
| HeNan Splendor vs. Bus Online Co | HeNan Splendor vs. Holitech Technology Co | HeNan Splendor vs. Gome Telecom Equipment | HeNan Splendor vs. Cultural Investment Holdings |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities |