Correlation Between Gome Telecom and Changzhou Almaden
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Changzhou Almaden Co, you can compare the effects of market volatilities on Gome Telecom and Changzhou Almaden 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 Changzhou Almaden. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Changzhou Almaden.
Diversification Opportunities for Gome Telecom and Changzhou Almaden
0.44 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Changzhou is 0.44. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Changzhou Almaden Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Almaden 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 Changzhou Almaden. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Almaden has no effect on the direction of Gome Telecom i.e., Gome Telecom and Changzhou Almaden go up and down completely randomly.
Pair Corralation between Gome Telecom and Changzhou Almaden
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.33 times more return on investment than Changzhou Almaden. However, Gome Telecom is 1.33 times more volatile than Changzhou Almaden Co. It trades about 0.0 of its potential returns per unit of risk. Changzhou Almaden Co is currently generating about -0.05 per unit of risk. If you would invest 185.00 in Gome Telecom Equipment on September 12, 2024 and sell it today you would lose (2.00) from holding Gome Telecom Equipment or give up 1.08% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Changzhou Almaden Co
Performance |
| Timeline |
| Gome Telecom Equipment |
| Changzhou Almaden |
Gome Telecom and Changzhou Almaden Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Changzhou Almaden
The main advantage of trading using opposite Gome Telecom and Changzhou Almaden positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Changzhou Almaden 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 Changzhou Almaden will offset losses from the drop in Changzhou Almaden's long position.| Gome Telecom vs. Lutian Machinery Co | Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. Bank of China | Gome Telecom vs. Gansu Jiu Steel |
| Changzhou Almaden vs. New Hope Dairy | Changzhou Almaden vs. Iat Automobile Technology | Changzhou Almaden vs. Jiajia Food Group | Changzhou Almaden vs. Beijing Sanyuan Foods |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Stocks Directory Find actively traded stocks across global markets |