Correlation Between Gome Telecom and China Asset
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By analyzing existing cross correlation between Gome Telecom Equipment and China Asset Management, you can compare the effects of market volatilities on Gome Telecom and China Asset 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 China Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and China Asset.
Diversification Opportunities for Gome Telecom and China Asset
-0.95 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Gome and China is -0.95. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 China Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of Gome Telecom i.e., Gome Telecom and China Asset go up and down completely randomly.
Pair Corralation between Gome Telecom and China Asset
If you would invest 74.00 in Gome Telecom Equipment on November 27, 2024 and sell it today you would earn a total of 0.00 from holding Gome Telecom Equipment or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. China Asset Management
Performance |
| Timeline |
| Gome Telecom Equipment |
| China Asset Management |
Gome Telecom and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and China Asset
The main advantage of trading using opposite Gome Telecom and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, China Asset 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 China Asset will offset losses from the drop in China Asset's long position.| Gome Telecom vs. Dareway Software Co | Gome Telecom vs. Jiugui Liquor Co | Gome Telecom vs. China National Software | Gome Telecom vs. Zhongshan Public Utilities |
| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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