Correlation Between Gome Telecom and Wuhan Hvsen
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By analyzing existing cross correlation between Gome Telecom Equipment and Wuhan Hvsen Biotechnology, you can compare the effects of market volatilities on Gome Telecom and Wuhan Hvsen 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 Wuhan Hvsen. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Wuhan Hvsen.
Diversification Opportunities for Gome Telecom and Wuhan Hvsen
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Wuhan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Wuhan Hvsen Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wuhan Hvsen Biotechnology 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 Wuhan Hvsen. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wuhan Hvsen Biotechnology has no effect on the direction of Gome Telecom i.e., Gome Telecom and Wuhan Hvsen go up and down completely randomly.
Pair Corralation between Gome Telecom and Wuhan Hvsen
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Wuhan Hvsen. In addition to that, Gome Telecom is 1.32 times more volatile than Wuhan Hvsen Biotechnology. It trades about -0.07 of its total potential returns per unit of risk. Wuhan Hvsen Biotechnology is currently generating about 0.01 per unit of volatility. If you would invest 1,267 in Wuhan Hvsen Biotechnology on September 13, 2024 and sell it today you would earn a total of 0.00 from holding Wuhan Hvsen Biotechnology or generate 0.0% 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. Wuhan Hvsen Biotechnology
Performance |
| Timeline |
| Gome Telecom Equipment |
| Wuhan Hvsen Biotechnology |
Gome Telecom and Wuhan Hvsen Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Wuhan Hvsen
The main advantage of trading using opposite Gome Telecom and Wuhan Hvsen positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Wuhan Hvsen 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 Wuhan Hvsen will offset losses from the drop in Wuhan Hvsen's long position.| Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. Agricultural Bank of | Gome Telecom vs. China Construction Bank | Gome Telecom vs. Bank of China |
| Wuhan Hvsen vs. Industrial and Commercial | Wuhan Hvsen vs. China Construction Bank | Wuhan Hvsen vs. Bank of China | Wuhan Hvsen vs. Agricultural Bank of |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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