Correlation Between Emdoor Information and TongFu Microelectronics
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By analyzing existing cross correlation between Emdoor Information Co and TongFu Microelectronics Co, you can compare the effects of market volatilities on Emdoor Information and TongFu Microelectronics 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 Emdoor Information with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Emdoor Information and TongFu Microelectronics.
Diversification Opportunities for Emdoor Information and TongFu Microelectronics
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Emdoor and TongFu is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Emdoor Information Co and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Emdoor Information 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 Emdoor Information Co are associated (or correlated) with TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Emdoor Information i.e., Emdoor Information and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Emdoor Information and TongFu Microelectronics
Assuming the 90 days trading horizon Emdoor Information is expected to generate 2.96 times less return on investment than TongFu Microelectronics. In addition to that, Emdoor Information is 1.21 times more volatile than TongFu Microelectronics Co. It trades about 0.01 of its total potential returns per unit of risk. TongFu Microelectronics Co is currently generating about 0.04 per unit of volatility. If you would invest 1,851 in TongFu Microelectronics Co on October 16, 2024 and sell it today you would earn a total of 868.00 from holding TongFu Microelectronics Co or generate 46.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 97.7% |
| Values | Daily Returns |
Emdoor Information Co vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Emdoor Information |
| TongFu Microelectronics |
Emdoor Information and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Emdoor Information and TongFu Microelectronics
The main advantage of trading using opposite Emdoor Information and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Emdoor Information position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| Emdoor Information vs. Shanghai Jinfeng Wine | Emdoor Information vs. SSAW Hotels Resorts | Emdoor Information vs. Shenyang Blue Silver | Emdoor Information vs. Jinling Hotel Corp |
| TongFu Microelectronics vs. China Life Insurance | TongFu Microelectronics vs. Ningbo Tech Bank Co | TongFu Microelectronics vs. Songz Automobile Air | TongFu Microelectronics vs. Queclink Wireless Solutions |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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