Correlation Between Gome Telecom and Chahua Modern
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Chahua Modern Housewares, you can compare the effects of market volatilities on Gome Telecom and Chahua Modern 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 Chahua Modern. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Chahua Modern.
Diversification Opportunities for Gome Telecom and Chahua Modern
-0.01 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gome and Chahua is -0.01. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Chahua Modern Housewares in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chahua Modern Housewares 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 Chahua Modern. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chahua Modern Housewares has no effect on the direction of Gome Telecom i.e., Gome Telecom and Chahua Modern go up and down completely randomly.
Pair Corralation between Gome Telecom and Chahua Modern
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Chahua Modern. But the stock apears to be less risky and, when comparing its historical volatility, Gome Telecom Equipment is 1.04 times less risky than Chahua Modern. The stock trades about -0.07 of its potential returns per unit of risk. The Chahua Modern Housewares is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 1,005 in Chahua Modern Housewares on October 26, 2024 and sell it today you would earn a total of 1,069 from holding Chahua Modern Housewares or generate 106.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Chahua Modern Housewares
Performance |
| Timeline |
| Gome Telecom Equipment |
| Chahua Modern Housewares |
Gome Telecom and Chahua Modern Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Chahua Modern
The main advantage of trading using opposite Gome Telecom and Chahua Modern positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Chahua Modern 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 Chahua Modern will offset losses from the drop in Chahua Modern's long position.| Gome Telecom vs. Chison Medical Technologies | Gome Telecom vs. Chinese Universe Publishing | Gome Telecom vs. Touchstone International Medical | Gome Telecom vs. Jiangsu Phoenix Publishing |
| Chahua Modern vs. Bus Online Co | Chahua Modern vs. Holitech Technology Co | Chahua Modern vs. Gome Telecom Equipment | Chahua Modern vs. Cultural Investment Holdings |
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 Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| CEOs Directory Screen CEOs from public companies around the world |