Correlation Between Oriental Times and Tongxing Environmental
Specify exactly 2 symbols:
By analyzing existing cross correlation between Oriental Times Media and Tongxing Environmental Protection, you can compare the effects of market volatilities on Oriental Times and Tongxing Environmental 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 Oriental Times with a short position of Tongxing Environmental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Oriental Times and Tongxing Environmental.
Diversification Opportunities for Oriental Times and Tongxing Environmental
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Oriental and Tongxing is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Oriental Times Media and Tongxing Environmental Protect in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongxing Environmental and Oriental Times 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 Oriental Times Media are associated (or correlated) with Tongxing Environmental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongxing Environmental has no effect on the direction of Oriental Times i.e., Oriental Times and Tongxing Environmental go up and down completely randomly.
Pair Corralation between Oriental Times and Tongxing Environmental
Assuming the 90 days trading horizon Oriental Times Media is expected to generate 1.54 times more return on investment than Tongxing Environmental. However, Oriental Times is 1.54 times more volatile than Tongxing Environmental Protection. It trades about 0.43 of its potential returns per unit of risk. Tongxing Environmental Protection is currently generating about 0.13 per unit of risk. If you would invest 253.00 in Oriental Times Media on August 29, 2024 and sell it today you would earn a total of 178.00 from holding Oriental Times Media or generate 70.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Oriental Times Media vs. Tongxing Environmental Protect
Performance |
| Timeline |
| Oriental Times Media |
| Tongxing Environmental |
Oriental Times and Tongxing Environmental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Oriental Times and Tongxing Environmental
The main advantage of trading using opposite Oriental Times and Tongxing Environmental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Oriental Times position performs unexpectedly, Tongxing Environmental 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 Tongxing Environmental will offset losses from the drop in Tongxing Environmental's long position.| Oriental Times vs. Industrial and Commercial | Oriental Times vs. China Construction Bank | Oriental Times vs. Agricultural Bank of | Oriental Times vs. Bank of China |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals |