Correlation Between Zhongtong Guomai and Tongyu Communication
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Tongyu Communication, you can compare the effects of market volatilities on Zhongtong Guomai and Tongyu Communication 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 Zhongtong Guomai with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Tongyu Communication.
Diversification Opportunities for Zhongtong Guomai and Tongyu Communication
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Tongyu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Tongyu Communication go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Tongyu Communication
Assuming the 90 days trading horizon Zhongtong Guomai is expected to generate 1.1 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, Zhongtong Guomai Communication is 1.02 times less risky than Tongyu Communication. It trades about 0.2 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.22 of returns per unit of risk over similar time horizon. If you would invest 1,025 in Tongyu Communication on September 6, 2024 and sell it today you would earn a total of 607.00 from holding Tongyu Communication or generate 59.22% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Zhongtong Guomai Communication vs. Tongyu Communication
Performance |
Timeline |
Zhongtong Guomai Com |
Tongyu Communication |
Zhongtong Guomai and Tongyu Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhongtong Guomai and Tongyu Communication
The main advantage of trading using opposite Zhongtong Guomai and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.Zhongtong Guomai vs. Wuhan Xianglong Power | Zhongtong Guomai vs. Yuanjie Semiconductor Technology | Zhongtong Guomai vs. Kuang Chi Technologies | Zhongtong Guomai vs. Yunnan Bowin Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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