Correlation Between Shenzhen Hifuture and TongFu Microelectronics
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By analyzing existing cross correlation between Shenzhen Hifuture Electric and TongFu Microelectronics Co, you can compare the effects of market volatilities on Shenzhen Hifuture and TongFu Microelectronics 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 Shenzhen Hifuture with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Hifuture and TongFu Microelectronics.
Diversification Opportunities for Shenzhen Hifuture and TongFu Microelectronics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Shenzhen and TongFu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Hifuture Electric and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Shenzhen Hifuture 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 Shenzhen Hifuture Electric are associated (or correlated) with TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Shenzhen Hifuture i.e., Shenzhen Hifuture and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Shenzhen Hifuture and TongFu Microelectronics
Assuming the 90 days trading horizon Shenzhen Hifuture is expected to generate 12.59 times less return on investment than TongFu Microelectronics. In addition to that, Shenzhen Hifuture is 1.01 times more volatile than TongFu Microelectronics Co. It trades about 0.0 of its total potential returns per unit of risk. TongFu Microelectronics Co is currently generating about 0.05 per unit of volatility. If you would invest 1,721 in TongFu Microelectronics Co on September 13, 2024 and sell it today you would earn a total of 1,259 from holding TongFu Microelectronics Co or generate 73.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 99.79% |
| Values | Daily Returns |
Shenzhen Hifuture Electric vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Shenzhen Hifuture |
| TongFu Microelectronics |
Shenzhen Hifuture and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Hifuture and TongFu Microelectronics
The main advantage of trading using opposite Shenzhen Hifuture and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Hifuture position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| Shenzhen Hifuture vs. China Nonferrous Metal | Shenzhen Hifuture vs. Xinya Electronic Co | Shenzhen Hifuture vs. Gansu Yasheng Industrial | Shenzhen Hifuture vs. Shenzhen Clou Electronics |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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