Correlation Between TongFu Microelectronics and Sichuan Jinshi
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By analyzing existing cross correlation between TongFu Microelectronics Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on TongFu Microelectronics and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Sichuan Jinshi.
Diversification Opportunities for TongFu Microelectronics and Sichuan Jinshi
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between TongFu and Sichuan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Sichuan Jinshi
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to generate 1.24 times more return on investment than Sichuan Jinshi. However, TongFu Microelectronics is 1.24 times more volatile than Sichuan Jinshi Technology. It trades about 0.05 of its potential returns per unit of risk. Sichuan Jinshi Technology is currently generating about 0.0 per unit of risk. If you would invest 1,669 in TongFu Microelectronics Co on September 2, 2024 and sell it today you would earn a total of 1,330 from holding TongFu Microelectronics Co or generate 79.69% 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| TongFu Microelectronics |
| Sichuan Jinshi Technology |
TongFu Microelectronics and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Sichuan Jinshi
The main advantage of trading using opposite TongFu Microelectronics and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| TongFu Microelectronics vs. Xiwang Foodstuffs Co | TongFu Microelectronics vs. Gome Telecom Equipment | TongFu Microelectronics vs. Great Sun Foods Co | TongFu Microelectronics vs. Dr Peng Telecom |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Shandong Gold Mining |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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