Correlation Between TongFu Microelectronics and Guangdong Shenglu
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By analyzing existing cross correlation between TongFu Microelectronics Co and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on TongFu Microelectronics and Guangdong Shenglu 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 Guangdong Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Guangdong Shenglu.
Diversification Opportunities for TongFu Microelectronics and Guangdong Shenglu
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TongFu and Guangdong is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Guangdong Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Guangdong Shenglu
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to generate 1.83 times more return on investment than Guangdong Shenglu. However, TongFu Microelectronics is 1.83 times more volatile than Guangdong Shenglu Telecommunication. It trades about 0.21 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about 0.03 per unit of risk. If you would invest 2,329 in TongFu Microelectronics Co on August 25, 2024 and sell it today you would earn a total of 637.00 from holding TongFu Microelectronics Co or generate 27.35% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| TongFu Microelectronics |
| Guangdong Shenglu |
TongFu Microelectronics and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Guangdong Shenglu
The main advantage of trading using opposite TongFu Microelectronics and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Guangdong Shenglu 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 Guangdong Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| TongFu Microelectronics vs. Lutian Machinery Co | TongFu Microelectronics vs. China Longyuan Power | TongFu Microelectronics vs. Changshu Tongrun Auto | TongFu Microelectronics vs. PetroChina Co Ltd |
| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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