Correlation Between TongFu Microelectronics and Integrated Electronic
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By analyzing existing cross correlation between TongFu Microelectronics Co and Integrated Electronic Systems, you can compare the effects of market volatilities on TongFu Microelectronics and Integrated Electronic 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 TongFu Microelectronics with a short position of Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Integrated Electronic.
Diversification Opportunities for TongFu Microelectronics and Integrated Electronic
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TongFu and Integrated is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic and TongFu Microelectronics 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 TongFu Microelectronics Co are associated (or correlated) with Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Integrated Electronic go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Integrated Electronic
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to under-perform the Integrated Electronic. In addition to that, TongFu Microelectronics is 1.09 times more volatile than Integrated Electronic Systems. It trades about -0.13 of its total potential returns per unit of risk. Integrated Electronic Systems is currently generating about -0.12 per unit of volatility. If you would invest 725.00 in Integrated Electronic Systems on October 29, 2024 and sell it today you would lose (52.00) from holding Integrated Electronic Systems or give up 7.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Integrated Electronic Systems
Performance |
| Timeline |
| TongFu Microelectronics |
| Integrated Electronic |
TongFu Microelectronics and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Integrated Electronic
The main advantage of trading using opposite TongFu Microelectronics and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| TongFu Microelectronics vs. Ligao Foods CoLtd | TongFu Microelectronics vs. Sichuan Hebang Biotechnology | TongFu Microelectronics vs. Fujian Anjoy Foods | TongFu Microelectronics vs. Guilin Seamild Foods |
| Integrated Electronic vs. Dezhan HealthCare Co | Integrated Electronic vs. Hangzhou Guotai Environmental | Integrated Electronic vs. Anhui Fuhuang Steel | Integrated Electronic vs. De Rucci Healthy |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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