Correlation Between Hongrun Construction and Tongyu Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hongrun Construction Group and Tongyu Communication, you can compare the effects of market volatilities on Hongrun Construction 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 Hongrun Construction with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hongrun Construction and Tongyu Communication.
Diversification Opportunities for Hongrun Construction and Tongyu Communication
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hongrun and Tongyu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Hongrun Construction Group and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Hongrun Construction 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 Hongrun Construction Group 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 Hongrun Construction i.e., Hongrun Construction and Tongyu Communication go up and down completely randomly.
Pair Corralation between Hongrun Construction and Tongyu Communication
Assuming the 90 days trading horizon Hongrun Construction is expected to generate 2.33 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, Hongrun Construction Group is 1.65 times less risky than Tongyu Communication. It trades about 0.18 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 1,344 in Tongyu Communication on August 25, 2024 and sell it today you would earn a total of 421.00 from holding Tongyu Communication or generate 31.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hongrun Construction Group vs. Tongyu Communication
Performance |
| Timeline |
| Hongrun Construction |
| Tongyu Communication |
Hongrun Construction and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hongrun Construction and Tongyu Communication
The main advantage of trading using opposite Hongrun Construction and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hongrun Construction 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.| Hongrun Construction vs. Ming Yang Smart | Hongrun Construction vs. 159681 | Hongrun Construction vs. 159005 | Hongrun Construction vs. Loctek Ergonomic 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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
Other Complementary Tools
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance |