Correlation Between Gome Telecom and Jiangxi JDL
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By analyzing existing cross correlation between Gome Telecom Equipment and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Gome Telecom and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gome Telecom and Jiangxi JDL.
Diversification Opportunities for Gome Telecom and Jiangxi JDL
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Gome and Jiangxi is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Gome Telecom Equipment and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Gome Telecom i.e., Gome Telecom and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Gome Telecom and Jiangxi JDL
Assuming the 90 days trading horizon Gome Telecom Equipment is expected to generate 1.98 times more return on investment than Jiangxi JDL. However, Gome Telecom is 1.98 times more volatile than Jiangxi JDL Environmental. It trades about 0.18 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.12 per unit of risk. If you would invest 168.00 in Gome Telecom Equipment on September 3, 2024 and sell it today you would earn a total of 22.00 from holding Gome Telecom Equipment or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gome Telecom Equipment vs. Jiangxi JDL Environmental
Performance |
| Timeline |
| Gome Telecom Equipment |
| Jiangxi JDL Environmental |
Gome Telecom and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gome Telecom and Jiangxi JDL
The main advantage of trading using opposite Gome Telecom and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gome Telecom position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's 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 |
| Jiangxi JDL vs. Cultural Investment Holdings | Jiangxi JDL vs. Gome Telecom Equipment | Jiangxi JDL vs. Bus Online Co | Jiangxi JDL 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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