Correlation Between Guangzhou Zhujiang and TongFu Microelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Zhujiang Brewery and TongFu Microelectronics Co, you can compare the effects of market volatilities on Guangzhou Zhujiang 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 Guangzhou Zhujiang with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Zhujiang and TongFu Microelectronics.
Diversification Opportunities for Guangzhou Zhujiang and TongFu Microelectronics
0.47 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Guangzhou and TongFu is 0.47. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Zhujiang Brewery and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Guangzhou Zhujiang 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 Guangzhou Zhujiang Brewery 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 Guangzhou Zhujiang i.e., Guangzhou Zhujiang and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Guangzhou Zhujiang and TongFu Microelectronics
Assuming the 90 days trading horizon Guangzhou Zhujiang is expected to generate 3.93 times less return on investment than TongFu Microelectronics. But when comparing it to its historical volatility, Guangzhou Zhujiang Brewery is 3.22 times less risky than TongFu Microelectronics. It trades about 0.07 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 2,870 in TongFu Microelectronics Co on September 5, 2024 and sell it today you would earn a total of 216.00 from holding TongFu Microelectronics Co or generate 7.53% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.65% |
| Values | Daily Returns |
Guangzhou Zhujiang Brewery vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Guangzhou Zhujiang |
| TongFu Microelectronics |
Guangzhou Zhujiang and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Zhujiang and TongFu Microelectronics
The main advantage of trading using opposite Guangzhou Zhujiang and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Zhujiang 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.| Guangzhou Zhujiang vs. Chengdu Kanghua Biological | Guangzhou Zhujiang vs. Beijing Wantai Biological | Guangzhou Zhujiang vs. Suzhou Novoprotein Scientific | Guangzhou Zhujiang vs. Aluminum Corp of |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals |