Correlation Between Songz Automobile and TongFu Microelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Songz Automobile Air and TongFu Microelectronics Co, you can compare the effects of market volatilities on Songz Automobile 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 Songz Automobile with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Songz Automobile and TongFu Microelectronics.
Diversification Opportunities for Songz Automobile and TongFu Microelectronics
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Songz and TongFu is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Songz Automobile Air and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Songz Automobile 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 Songz Automobile Air 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 Songz Automobile i.e., Songz Automobile and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Songz Automobile and TongFu Microelectronics
Assuming the 90 days trading horizon Songz Automobile is expected to generate 3.06 times less return on investment than TongFu Microelectronics. But when comparing it to its historical volatility, Songz Automobile Air is 1.53 times less risky than TongFu Microelectronics. It trades about 0.04 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 2,167 in TongFu Microelectronics Co on August 25, 2024 and sell it today you would earn a total of 799.00 from holding TongFu Microelectronics Co or generate 36.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Songz Automobile Air vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Songz Automobile Air |
| TongFu Microelectronics |
Songz Automobile and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Songz Automobile and TongFu Microelectronics
The main advantage of trading using opposite Songz Automobile and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Songz Automobile 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.| Songz Automobile vs. TongFu Microelectronics Co | Songz Automobile vs. Juneyao Airlines | Songz Automobile vs. Dhc Software Co | Songz Automobile vs. Epoxy Base Electronic |
| TongFu Microelectronics vs. Lutian Machinery Co | TongFu Microelectronics vs. China Longyuan Power | TongFu Microelectronics vs. Changshu Tongrun Auto | TongFu Microelectronics vs. PetroChina Co Ltd |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |