Correlation Between Lepu Medical and Gome Telecom
Specify exactly 2 symbols:
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
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between Lepu and Gome is 0.11. 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
Assuming the 90 days trading horizon Lepu Medical Tech is expected to under-perform the Gome Telecom. But the stock apears to be less risky and, when comparing its historical volatility, Lepu Medical Tech is 1.12 times less risky than Gome Telecom. The stock trades about 0.0 of its potential returns per unit of risk. The Gome Telecom Equipment is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 106.00 in Gome Telecom Equipment on September 20, 2024 and sell it today you would earn a total of 53.00 from holding Gome Telecom Equipment or generate 50.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Insignificant |
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. Industrial and Commercial | Lepu Medical vs. Kweichow Moutai Co | Lepu Medical vs. Agricultural Bank of | Lepu Medical vs. China Mobile Limited |
Gome Telecom vs. Cowealth Medical China | Gome Telecom vs. Harvest Fund Management | Gome Telecom vs. Lepu Medical Tech | Gome Telecom vs. Shanghai Metersbonwe FashionAccessories |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
Other Complementary Tools
Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
Global Correlations Find global opportunities by holding instruments from different markets | |
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |