Correlation Between TongFu Microelectronics and Zhejiang Yongjin
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By analyzing existing cross correlation between TongFu Microelectronics Co and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on TongFu Microelectronics and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of TongFu Microelectronics and Zhejiang Yongjin.
Diversification Opportunities for TongFu Microelectronics and Zhejiang Yongjin
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between TongFu and Zhejiang is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding TongFu Microelectronics Co and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin Metal 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of TongFu Microelectronics i.e., TongFu Microelectronics and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between TongFu Microelectronics and Zhejiang Yongjin
Assuming the 90 days trading horizon TongFu Microelectronics Co is expected to generate 2.08 times more return on investment than Zhejiang Yongjin. However, TongFu Microelectronics is 2.08 times more volatile than Zhejiang Yongjin Metal. It trades about -0.05 of its potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about -0.17 per unit of risk. If you would invest 2,850 in TongFu Microelectronics Co on October 16, 2024 and sell it today you would lose (131.00) from holding TongFu Microelectronics Co or give up 4.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
TongFu Microelectronics Co vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| TongFu Microelectronics |
| Zhejiang Yongjin Metal |
TongFu Microelectronics and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TongFu Microelectronics and Zhejiang Yongjin
The main advantage of trading using opposite TongFu Microelectronics and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TongFu Microelectronics position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin's long position.| TongFu Microelectronics vs. China Life Insurance | TongFu Microelectronics vs. Ningbo Tech Bank Co | TongFu Microelectronics vs. Songz Automobile Air | TongFu Microelectronics vs. Queclink Wireless Solutions |
| Zhejiang Yongjin vs. Zijin Mining Group | Zhejiang Yongjin vs. Wanhua Chemical Group | Zhejiang Yongjin vs. Baoshan Iron Steel | Zhejiang Yongjin vs. Shandong Gold Mining |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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