Correlation Between Tongyu Communication and Jiangxi Selon
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By analyzing existing cross correlation between Tongyu Communication and Jiangxi Selon Industrial, you can compare the effects of market volatilities on Tongyu Communication and Jiangxi Selon 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 Tongyu Communication with a short position of Jiangxi Selon. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Jiangxi Selon.
Diversification Opportunities for Tongyu Communication and Jiangxi Selon
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Jiangxi is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Jiangxi Selon Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi Selon Industrial and Tongyu Communication 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 Tongyu Communication are associated (or correlated) with Jiangxi Selon. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi Selon Industrial has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Jiangxi Selon go up and down completely randomly.
Pair Corralation between Tongyu Communication and Jiangxi Selon
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.63 times less return on investment than Jiangxi Selon. In addition to that, Tongyu Communication is 1.7 times more volatile than Jiangxi Selon Industrial. It trades about 0.08 of its total potential returns per unit of risk. Jiangxi Selon Industrial is currently generating about 0.22 per unit of volatility. If you would invest 611.00 in Jiangxi Selon Industrial on September 25, 2024 and sell it today you would earn a total of 146.00 from holding Jiangxi Selon Industrial or generate 23.9% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Tongyu Communication vs. Jiangxi Selon Industrial
Performance |
Timeline |
Tongyu Communication |
Jiangxi Selon Industrial |
Tongyu Communication and Jiangxi Selon Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongyu Communication and Jiangxi Selon
The main advantage of trading using opposite Tongyu Communication and Jiangxi Selon positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Jiangxi Selon 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 Selon will offset losses from the drop in Jiangxi Selon's long position.Tongyu Communication vs. Ningbo Homelink Eco iTech | Tongyu Communication vs. Hunan TV Broadcast | Tongyu Communication vs. Heilongjiang Transport Development | Tongyu Communication vs. Xiamen Goldenhome Co |
Jiangxi Selon vs. Tongyu Communication | Jiangxi Selon vs. Guangzhou Haige Communications | Jiangxi Selon vs. Xinjiang Communications Construction | Jiangxi Selon vs. Zhongtong Guomai Communication |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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