Correlation Between Zotye Automobile and Tongyu Communication
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By analyzing existing cross correlation between Zotye Automobile Co and Tongyu Communication, you can compare the effects of market volatilities on Zotye Automobile 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 Zotye Automobile with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zotye Automobile and Tongyu Communication.
Diversification Opportunities for Zotye Automobile and Tongyu Communication
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zotye and Tongyu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Zotye Automobile Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Zotye Automobile 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 Zotye Automobile Co 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 Zotye Automobile i.e., Zotye Automobile and Tongyu Communication go up and down completely randomly.
Pair Corralation between Zotye Automobile and Tongyu Communication
Assuming the 90 days trading horizon Zotye Automobile Co is expected to under-perform the Tongyu Communication. In addition to that, Zotye Automobile is 1.02 times more volatile than Tongyu Communication. It trades about -0.03 of its total potential returns per unit of risk. Tongyu Communication is currently generating about 0.06 per unit of volatility. If you would invest 866.00 in Tongyu Communication on August 29, 2024 and sell it today you would earn a total of 844.00 from holding Tongyu Communication or generate 97.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zotye Automobile Co vs. Tongyu Communication
Performance |
| Timeline |
| Zotye Automobile |
| Tongyu Communication |
Zotye Automobile and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zotye Automobile and Tongyu Communication
The main advantage of trading using opposite Zotye Automobile and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zotye Automobile 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.| Zotye Automobile vs. Caihong Display Devices | Zotye Automobile vs. Sinomach Automobile Co | Zotye Automobile vs. Lander Sports Development | Zotye Automobile vs. Songz Automobile Air |
| Tongyu Communication vs. Shenzhen MYS Environmental | Tongyu Communication vs. AVIC Fund Management | Tongyu Communication vs. Shenzhen Bingchuan Network | Tongyu Communication vs. Penghua Shenzhen Energy |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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