Correlation Between TongFu Microelectronics and Oppein Home
Specify exactly 2 symbols:
By analyzing existing cross correlation between TongFu Microelectronics Co and Oppein Home Group, you can compare the effects of market volatilities on TongFu Microelectronics and Oppein Home 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 Oppein Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Oppein Home.
Diversification Opportunities for TongFu Microelectronics and Oppein Home
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between TongFu and Oppein is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Oppein Home Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Oppein Home Group 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 Oppein Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Oppein Home Group has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Oppein Home go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Oppein Home
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to under-perform the Oppein Home. In addition to that, TongFu Microelectronics is 1.44 times more volatile than Oppein Home Group. It trades about -0.23 of its total potential returns per unit of risk. Oppein Home Group is currently generating about 0.06 per unit of volatility. If you would invest 7,380 in Oppein Home Group on September 13, 2024 and sell it today you would earn a total of 185.00 from holding Oppein Home Group or generate 2.51% 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. Oppein Home Group
Performance |
| Timeline |
| TongFu Microelectronics |
| Oppein Home Group |
TongFu Microelectronics and Oppein Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Oppein Home
The main advantage of trading using opposite TongFu Microelectronics and Oppein Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Oppein Home 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 Oppein Home will offset losses from the drop in Oppein Home's long position.The idea behind TongFu Microelectronics Co and Oppein Home Group pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| Oppein Home vs. TongFu Microelectronics Co | Oppein Home vs. Hangzhou Weiguang Electronic | Oppein Home vs. Xinya Electronic Co | Oppein Home vs. Integrated Electronic Systems |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |