Correlation Between Ciwen Media and TongFu Microelectronics
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By analyzing existing cross correlation between Ciwen Media Co and TongFu Microelectronics Co, you can compare the effects of market volatilities on Ciwen Media 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 Ciwen Media with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and TongFu Microelectronics.
Diversification Opportunities for Ciwen Media and TongFu Microelectronics
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Ciwen and TongFu is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Ciwen Media 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 Ciwen Media Co 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 Ciwen Media i.e., Ciwen Media and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Ciwen Media and TongFu Microelectronics
Assuming the 90 days trading horizon Ciwen Media Co is expected to generate 0.88 times more return on investment than TongFu Microelectronics. However, Ciwen Media Co is 1.14 times less risky than TongFu Microelectronics. It trades about -0.05 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about -0.08 per unit of risk. If you would invest 643.00 in Ciwen Media Co on October 28, 2024 and sell it today you would lose (22.00) from holding Ciwen Media Co or give up 3.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciwen Media Co vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Ciwen Media |
| TongFu Microelectronics |
Ciwen Media and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and TongFu Microelectronics
The main advantage of trading using opposite Ciwen Media and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media 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.| Ciwen Media vs. Ligao Foods CoLtd | Ciwen Media vs. Xinjiang Tianrun Dairy | Ciwen Media vs. Qingdao Foods Co | Ciwen Media vs. BTG Hotels Group |
| TongFu Microelectronics vs. Ligao Foods CoLtd | TongFu Microelectronics vs. Sichuan Hebang Biotechnology | TongFu Microelectronics vs. Fujian Anjoy Foods | TongFu Microelectronics vs. Guilin Seamild Foods |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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