Correlation Between TongFu Microelectronics and Shenzhen Bioeasy
Specify exactly 2 symbols:
By analyzing existing cross correlation between TongFu Microelectronics Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on TongFu Microelectronics and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Shenzhen Bioeasy.
Diversification Opportunities for TongFu Microelectronics and Shenzhen Bioeasy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TongFu and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Shenzhen Bioeasy
Assuming the 90 days trading horizon TongFu Microelectronics is expected to generate 1.46 times less return on investment than Shenzhen Bioeasy. But when comparing it to its historical volatility, TongFu Microelectronics Co is 1.33 times less risky than Shenzhen Bioeasy. It trades about 0.07 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 707.00 in Shenzhen Bioeasy Biotechnology on August 31, 2024 and sell it today you would earn a total of 281.00 from holding Shenzhen Bioeasy Biotechnology or generate 39.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| TongFu Microelectronics |
| Shenzhen Bioeasy Bio |
TongFu Microelectronics and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Shenzhen Bioeasy
The main advantage of trading using opposite TongFu Microelectronics and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| TongFu Microelectronics vs. Kweichow Moutai Co | TongFu Microelectronics vs. NAURA Technology Group | TongFu Microelectronics vs. APT Medical | TongFu Microelectronics vs. Contemporary Amperex Technology |
| Shenzhen Bioeasy vs. PetroChina Co Ltd | Shenzhen Bioeasy vs. China Mobile Limited | Shenzhen Bioeasy vs. Ping An Insurance | Shenzhen Bioeasy vs. China Petroleum Chemical |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |