Correlation Between TongFu Microelectronics and Kingsignal Technology
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By analyzing existing cross correlation between TongFu Microelectronics Co and Kingsignal Technology Co, you can compare the effects of market volatilities on TongFu Microelectronics and Kingsignal Technology 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 Kingsignal Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Kingsignal Technology.
Diversification Opportunities for TongFu Microelectronics and Kingsignal Technology
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between TongFu and Kingsignal is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Kingsignal Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kingsignal 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 Kingsignal Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kingsignal Technology has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Kingsignal Technology go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Kingsignal Technology
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to under-perform the Kingsignal Technology. But the stock apears to be less risky and, when comparing its historical volatility, TongFu Microelectronics Co is 2.15 times less risky than Kingsignal Technology. The stock trades about -0.07 of its potential returns per unit of risk. The Kingsignal Technology Co is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,068 in Kingsignal Technology Co on October 25, 2024 and sell it today you would lose (70.00) from holding Kingsignal Technology Co or give up 6.55% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Kingsignal Technology Co
Performance |
| Timeline |
| TongFu Microelectronics |
| Kingsignal Technology |
TongFu Microelectronics and Kingsignal Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Kingsignal Technology
The main advantage of trading using opposite TongFu Microelectronics and Kingsignal Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Kingsignal Technology 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 Kingsignal Technology will offset losses from the drop in Kingsignal Technology's long position.| TongFu Microelectronics vs. Kweichow Moutai Co | TongFu Microelectronics vs. NAURA Technology Group | TongFu Microelectronics vs. APT Medical | TongFu Microelectronics vs. BYD Co Ltd |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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