Correlation Between Gome Telecom and Jahen Household
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By analyzing existing cross correlation between Gome Telecom Equipment and Jahen Household Products, you can compare the effects of market volatilities on Gome Telecom and Jahen Household 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 Jahen Household. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Jahen Household.
Diversification Opportunities for Gome Telecom and Jahen Household
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Jahen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Jahen Household Products in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jahen Household Products 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 Jahen Household. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jahen Household Products has no effect on the direction of Gome Telecom i.e., Gome Telecom and Jahen Household go up and down completely randomly.
Pair Corralation between Gome Telecom and Jahen Household
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.52 times more return on investment than Jahen Household. However, Gome Telecom is 1.52 times more volatile than Jahen Household Products. It trades about 0.14 of its potential returns per unit of risk. Jahen Household Products is currently generating about 0.14 per unit of risk. If you would invest 168.00 in Gome Telecom Equipment on September 5, 2024 and sell it today you would earn a total of 18.00 from holding Gome Telecom Equipment or generate 10.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Jahen Household Products
Performance |
| Timeline |
| Gome Telecom Equipment |
| Jahen Household Products |
Gome Telecom and Jahen Household Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Jahen Household
The main advantage of trading using opposite Gome Telecom and Jahen Household positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Jahen Household 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 Jahen Household will offset losses from the drop in Jahen Household's long position.| Gome Telecom vs. Guangzhou KingTeller Technology | Gome Telecom vs. Hoshine Silicon Ind | Gome Telecom vs. Kingsignal Technology Co | Gome Telecom vs. Kangping Technology Co |
| Jahen Household vs. Guangzhou KingTeller Technology | Jahen Household vs. ButOne Information Corp | Jahen Household vs. Northking Information Technology | Jahen Household vs. Changchun UP Optotech |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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