Correlation Between TongFu Microelectronics and Guangdong Ellington
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By analyzing existing cross correlation between TongFu Microelectronics Co and Guangdong Ellington Electronics, you can compare the effects of market volatilities on TongFu Microelectronics and Guangdong Ellington 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 Ellington. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Guangdong Ellington.
Diversification Opportunities for TongFu Microelectronics and Guangdong Ellington
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TongFu and Guangdong is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Guangdong Ellington Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Ellington 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 Ellington. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Ellington has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Guangdong Ellington go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Guangdong Ellington
Assuming the 90 days trading horizon TongFu Microelectronics is expected to generate 3.36 times less return on investment than Guangdong Ellington. But when comparing it to its historical volatility, TongFu Microelectronics Co is 1.24 times less risky than Guangdong Ellington. It trades about 0.08 of its potential returns per unit of risk. Guangdong Ellington Electronics is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 910.00 in Guangdong Ellington Electronics on November 3, 2024 and sell it today you would earn a total of 106.00 from holding Guangdong Ellington Electronics or generate 11.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Guangdong Ellington Electronic
Performance |
| Timeline |
| TongFu Microelectronics |
| Guangdong Ellington |
TongFu Microelectronics and Guangdong Ellington Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Guangdong Ellington
The main advantage of trading using opposite TongFu Microelectronics and Guangdong Ellington positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Guangdong Ellington 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 Ellington will offset losses from the drop in Guangdong Ellington'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 |
| Guangdong Ellington vs. HaiXin Foods Co | Guangdong Ellington vs. Zhongyin Babi Food | Guangdong Ellington vs. Ningbo MedicalSystem Biotechnology | Guangdong Ellington vs. Anji Foodstuff Co |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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