Correlation Between Lepu Medical and Gome Telecom
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By analyzing existing cross correlation between Lepu Medical Tech and Gome Telecom Equipment, you can compare the effects of market volatilities on Lepu Medical 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 Lepu Medical with a short position of Gome Telecom. Check out your portfolio center. Please also check ongoing floating volatility patterns of Lepu Medical and Gome Telecom.
Diversification Opportunities for Lepu Medical and Gome Telecom
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Lepu and Gome is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Lepu Medical Tech 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 Lepu Medical 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 Lepu Medical Tech 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 Lepu Medical i.e., Lepu Medical and Gome Telecom go up and down completely randomly.
Pair Corralation between Lepu Medical and Gome Telecom
If you would invest 1,184 in Lepu Medical Tech on December 10, 2024 and sell it today you would earn a total of 14.00 from holding Lepu Medical Tech or generate 1.18% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Lepu Medical Tech vs. Gome Telecom Equipment
Performance |
Timeline |
Lepu Medical Tech |
Gome Telecom Equipment |
Lepu Medical and Gome Telecom Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Lepu Medical and Gome Telecom
The main advantage of trading using opposite Lepu Medical and Gome Telecom positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Lepu Medical 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.Lepu Medical vs. Shandong Longquan Pipeline | Lepu Medical vs. AVIC Fund Management | Lepu Medical vs. Everjoy Health Group | Lepu Medical vs. Impulse Qingdao Health |
Gome Telecom vs. Ningbo Bohui Chemical | Gome Telecom vs. Guizhou Chanhen Chemical | Gome Telecom vs. Liuzhou Chemical Industry | Gome Telecom vs. Xiangtan Electrochemical Scientific |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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