Correlation Between Tongyu Communication and Northking Information
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By analyzing existing cross correlation between Tongyu Communication and Northking Information Technology, you can compare the effects of market volatilities on Tongyu Communication and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Northking Information.
Diversification Opportunities for Tongyu Communication and Northking Information
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongyu and Northking is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Northking Information go up and down completely randomly.
Pair Corralation between Tongyu Communication and Northking Information
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.52 times more return on investment than Northking Information. However, Tongyu Communication is 1.52 times more volatile than Northking Information Technology. It trades about 0.0 of its potential returns per unit of risk. Northking Information Technology is currently generating about -0.05 per unit of risk. If you would invest 1,672 in Tongyu Communication on September 10, 2024 and sell it today you would lose (35.00) from holding Tongyu Communication or give up 2.09% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Tongyu Communication vs. Northking Information Technolo
Performance |
Timeline |
Tongyu Communication |
Northking Information |
Tongyu Communication and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongyu Communication and Northking Information
The main advantage of trading using opposite Tongyu Communication and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China | Tongyu Communication vs. Agricultural Bank of |
Northking Information vs. Industrial and Commercial | Northking Information vs. China Construction Bank | Northking Information vs. Bank of China | Northking Information vs. Agricultural Bank of |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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