Correlation Between TongFu Microelectronics and Xinhua Winshare
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By analyzing existing cross correlation between TongFu Microelectronics Co and Xinhua Winshare Publishing, you can compare the effects of market volatilities on TongFu Microelectronics and Xinhua Winshare 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 Xinhua Winshare. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Xinhua Winshare.
Diversification Opportunities for TongFu Microelectronics and Xinhua Winshare
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between TongFu and Xinhua is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Xinhua Winshare Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinhua Winshare Publ 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 Xinhua Winshare. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinhua Winshare Publ has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Xinhua Winshare go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Xinhua Winshare
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to generate 1.64 times more return on investment than Xinhua Winshare. However, TongFu Microelectronics is 1.64 times more volatile than Xinhua Winshare Publishing. It trades about 0.08 of its potential returns per unit of risk. Xinhua Winshare Publishing is currently generating about -0.15 per unit of risk. If you would invest 2,746 in TongFu Microelectronics Co on November 3, 2024 and sell it today you would earn a total of 84.00 from holding TongFu Microelectronics Co or generate 3.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Xinhua Winshare Publishing
Performance |
| Timeline |
| TongFu Microelectronics |
| Xinhua Winshare Publ |
TongFu Microelectronics and Xinhua Winshare Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Xinhua Winshare
The main advantage of trading using opposite TongFu Microelectronics and Xinhua Winshare positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Xinhua Winshare 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 Xinhua Winshare will offset losses from the drop in Xinhua Winshare's long position.| TongFu Microelectronics vs. Soyea Technology Co | TongFu Microelectronics vs. Keeson Technology Corp | TongFu Microelectronics vs. Bohai Leasing Co | TongFu Microelectronics vs. Sunny Loan Top |
| Xinhua Winshare vs. Grandblue Environment Co | Xinhua Winshare vs. JuneYao Dairy Co | Xinhua Winshare vs. Guilin Seamild Foods | Xinhua Winshare vs. Yan Tai Shuang |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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