Correlation Between Tongyu Communication and Shandong Sinoglory
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By analyzing existing cross correlation between Tongyu Communication and Shandong Sinoglory Health, you can compare the effects of market volatilities on Tongyu Communication and Shandong Sinoglory 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 Shandong Sinoglory. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Shandong Sinoglory.
Diversification Opportunities for Tongyu Communication and Shandong Sinoglory
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Shandong is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Shandong Sinoglory Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Sinoglory Health 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 Shandong Sinoglory. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Sinoglory Health has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Shandong Sinoglory go up and down completely randomly.
Pair Corralation between Tongyu Communication and Shandong Sinoglory
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.81 times more return on investment than Shandong Sinoglory. However, Tongyu Communication is 1.81 times more volatile than Shandong Sinoglory Health. It trades about 0.02 of its potential returns per unit of risk. Shandong Sinoglory Health is currently generating about 0.04 per unit of risk. If you would invest 1,493 in Tongyu Communication on December 25, 2024 and sell it today you would earn a total of 23.00 from holding Tongyu Communication or generate 1.54% 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. Shandong Sinoglory Health
Performance |
Timeline |
Tongyu Communication |
Shandong Sinoglory Health |
Tongyu Communication and Shandong Sinoglory Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Tongyu Communication and Shandong Sinoglory
The main advantage of trading using opposite Tongyu Communication and Shandong Sinoglory positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Shandong Sinoglory 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 Shandong Sinoglory will offset losses from the drop in Shandong Sinoglory's long position.Tongyu Communication vs. Success Electronics | Tongyu Communication vs. Wuxi Dk Electronic | Tongyu Communication vs. Caihong Display Devices | Tongyu Communication vs. Everdisplay Optronics Shanghai |
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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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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