Correlation Between TongFu Microelectronics and Ciwen Media
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By analyzing existing cross correlation between TongFu Microelectronics Co and Ciwen Media Co, you can compare the effects of market volatilities on TongFu Microelectronics and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Ciwen Media.
Diversification Opportunities for TongFu Microelectronics and Ciwen Media
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TongFu and Ciwen is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Ciwen Media go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Ciwen Media
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to under-perform the Ciwen Media. In addition to that, TongFu Microelectronics is 1.14 times more volatile than Ciwen Media Co. It trades about -0.08 of its total potential returns per unit of risk. Ciwen Media Co is currently generating about -0.05 per unit of volatility. If you would invest 643.00 in Ciwen Media Co on October 28, 2024 and sell it today you would lose (22.00) from holding Ciwen Media Co or give up 3.42% 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. Ciwen Media Co
Performance |
| Timeline |
| TongFu Microelectronics |
| Ciwen Media |
TongFu Microelectronics and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Ciwen Media
The main advantage of trading using opposite TongFu Microelectronics and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media'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 |
| Ciwen Media vs. Ligao Foods CoLtd | Ciwen Media vs. Xinjiang Tianrun Dairy | Ciwen Media vs. Qingdao Foods Co | Ciwen Media vs. BTG Hotels Group |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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