Correlation Between Gome Telecom and Jinsanjiang Silicon
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By analyzing existing cross correlation between Gome Telecom Equipment and Jinsanjiang Silicon Material, you can compare the effects of market volatilities on Gome Telecom and Jinsanjiang Silicon 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 Jinsanjiang Silicon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Jinsanjiang Silicon.
Diversification Opportunities for Gome Telecom and Jinsanjiang Silicon
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Jinsanjiang is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Jinsanjiang Silicon Material in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jinsanjiang Silicon 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 Jinsanjiang Silicon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jinsanjiang Silicon has no effect on the direction of Gome Telecom i.e., Gome Telecom and Jinsanjiang Silicon go up and down completely randomly.
Pair Corralation between Gome Telecom and Jinsanjiang Silicon
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.28 times more return on investment than Jinsanjiang Silicon. However, Gome Telecom is 1.28 times more volatile than Jinsanjiang Silicon Material. It trades about -0.01 of its potential returns per unit of risk. Jinsanjiang Silicon Material is currently generating about -0.11 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 (3.00) from holding Gome Telecom Equipment or give up 1.62% 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. Jinsanjiang Silicon Material
Performance |
| Timeline |
| Gome Telecom Equipment |
| Jinsanjiang Silicon |
Gome Telecom and Jinsanjiang Silicon Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Jinsanjiang Silicon
The main advantage of trading using opposite Gome Telecom and Jinsanjiang Silicon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Jinsanjiang Silicon 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 Jinsanjiang Silicon will offset losses from the drop in Jinsanjiang Silicon'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 |
| Jinsanjiang Silicon vs. Zijin Mining Group | Jinsanjiang Silicon vs. Wanhua Chemical Group | Jinsanjiang Silicon vs. Baoshan Iron Steel | Jinsanjiang Silicon vs. Rongsheng Petrochemical Co |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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