Correlation Between Jiangsu Phoenix and Gome Telecom
Specify exactly 2 symbols:
By analyzing existing cross correlation between Jiangsu Phoenix Publishing and Gome Telecom Equipment, you can compare the effects of market volatilities on Jiangsu Phoenix and Gome Telecom 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 Jiangsu Phoenix with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Phoenix and Gome Telecom.
Diversification Opportunities for Jiangsu Phoenix and Gome Telecom
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Jiangsu and Gome is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Phoenix Publishing and Gome Telecom Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gome Telecom Equipment and Jiangsu Phoenix 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 Jiangsu Phoenix Publishing are associated (or correlated) with Gome Telecom. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gome Telecom Equipment has no effect on the direction of Jiangsu Phoenix i.e., Jiangsu Phoenix and Gome Telecom go up and down completely randomly.
Pair Corralation between Jiangsu Phoenix and Gome Telecom
Assuming the 90 days trading horizon Jiangsu Phoenix Publishing is expected to generate 0.72 times more return on investment than Gome Telecom. However, Jiangsu Phoenix Publishing is 1.38 times less risky than Gome Telecom. It trades about 0.06 of its potential returns per unit of risk. Gome Telecom Equipment is currently generating about -0.81 per unit of risk. If you would invest 1,032 in Jiangsu Phoenix Publishing on October 26, 2024 and sell it today you would earn a total of 41.00 from holding Jiangsu Phoenix Publishing or generate 3.97% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Phoenix Publishing vs. Gome Telecom Equipment
Performance |
| Timeline |
| Jiangsu Phoenix Publ |
| Gome Telecom Equipment |
Jiangsu Phoenix and Gome Telecom Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Phoenix and Gome Telecom
The main advantage of trading using opposite Jiangsu Phoenix and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Phoenix position performs unexpectedly, Gome Telecom 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 Gome Telecom will offset losses from the drop in Gome Telecom's long position.| Jiangsu Phoenix vs. Bus Online Co | Jiangsu Phoenix vs. Holitech Technology Co | Jiangsu Phoenix vs. Gome Telecom Equipment | Jiangsu Phoenix vs. Cultural Investment Holdings |
| Gome Telecom vs. Chison Medical Technologies | Gome Telecom vs. Chinese Universe Publishing | Gome Telecom vs. Touchstone International Medical | Gome Telecom vs. Jiangsu Phoenix Publishing |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Commodity Directory Find actively traded commodities issued by global exchanges |