Correlation Between TongFu Microelectronics and Lepu Medical
Specify exactly 2 symbols:
By analyzing existing cross correlation between TongFu Microelectronics Co and Lepu Medical Tech, you can compare the effects of market volatilities on TongFu Microelectronics and Lepu Medical 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 TongFu Microelectronics with a short position of Lepu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Lepu Medical.
Diversification Opportunities for TongFu Microelectronics and Lepu Medical
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TongFu and Lepu is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Lepu Medical Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lepu Medical Tech and TongFu Microelectronics 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 TongFu Microelectronics Co are associated (or correlated) with Lepu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lepu Medical Tech has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Lepu Medical go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Lepu Medical
Assuming the 90 days trading horizon TongFu Microelectronics is expected to generate 2.17 times less return on investment than Lepu Medical. In addition to that, TongFu Microelectronics is 1.43 times more volatile than Lepu Medical Tech. It trades about 0.01 of its total potential returns per unit of risk. Lepu Medical Tech is currently generating about 0.03 per unit of volatility. If you would invest 1,176 in Lepu Medical Tech on September 25, 2024 and sell it today you would earn a total of 9.00 from holding Lepu Medical Tech or generate 0.77% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
TongFu Microelectronics Co vs. Lepu Medical Tech
Performance |
Timeline |
TongFu Microelectronics |
Lepu Medical Tech |
TongFu Microelectronics and Lepu Medical Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with TongFu Microelectronics and Lepu Medical
The main advantage of trading using opposite TongFu Microelectronics and Lepu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Lepu Medical 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 Lepu Medical will offset losses from the drop in Lepu Medical's long position.TongFu Microelectronics vs. Ming Yang Smart | TongFu Microelectronics vs. 159681 | TongFu Microelectronics vs. 159005 | TongFu Microelectronics vs. Loctek Ergonomic Technology |
Lepu Medical vs. TongFu Microelectronics Co | Lepu Medical vs. Ping An Insurance | Lepu Medical vs. GreenTech Environmental Co | Lepu Medical vs. Central Plains Environment |
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
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |