Correlation Between Gome Telecom and Juneyao Airlines
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gome Telecom Equipment and Juneyao Airlines, you can compare the effects of market volatilities on Gome Telecom and Juneyao Airlines 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 Juneyao Airlines. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Juneyao Airlines.
Diversification Opportunities for Gome Telecom and Juneyao Airlines
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Gome and Juneyao is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Juneyao Airlines in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juneyao Airlines 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 Juneyao Airlines. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juneyao Airlines has no effect on the direction of Gome Telecom i.e., Gome Telecom and Juneyao Airlines go up and down completely randomly.
Pair Corralation between Gome Telecom and Juneyao Airlines
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to under-perform the Juneyao Airlines. In addition to that, Gome Telecom is 1.59 times more volatile than Juneyao Airlines. It trades about -0.03 of its total potential returns per unit of risk. Juneyao Airlines is currently generating about 0.03 per unit of volatility. If you would invest 1,303 in Juneyao Airlines on September 3, 2024 and sell it today you would earn a total of 144.00 from holding Juneyao Airlines or generate 11.05% 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. Juneyao Airlines
Performance |
| Timeline |
| Gome Telecom Equipment |
| Juneyao Airlines |
Gome Telecom and Juneyao Airlines Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Juneyao Airlines
The main advantage of trading using opposite Gome Telecom and Juneyao Airlines positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Juneyao Airlines 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 Juneyao Airlines will offset losses from the drop in Juneyao Airlines' long position.| Gome Telecom vs. PetroChina Co Ltd | Gome Telecom vs. China Mobile Limited | Gome Telecom vs. Industrial and Commercial | Gome Telecom vs. China Life Insurance |
| Juneyao Airlines vs. Cultural Investment Holdings | Juneyao Airlines vs. Gome Telecom Equipment | Juneyao Airlines vs. Bus Online Co | Juneyao Airlines vs. Holitech Technology 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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| CEOs Directory Screen CEOs from public companies around the world | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |