Correlation Between Tongding Interconnection and Chongqing Road
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By analyzing existing cross correlation between Tongding Interconnection Information and Chongqing Road Bridge, you can compare the effects of market volatilities on Tongding Interconnection and Chongqing Road 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 Tongding Interconnection with a short position of Chongqing Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Chongqing Road.
Diversification Opportunities for Tongding Interconnection and Chongqing Road
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongding and Chongqing is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Chongqing Road Bridge in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chongqing Road Bridge and Tongding Interconnection 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 Tongding Interconnection Information are associated (or correlated) with Chongqing Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chongqing Road Bridge has no effect on the direction of Tongding Interconnection i.e., Tongding Interconnection and Chongqing Road go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Chongqing Road
Assuming the 90 days trading horizon Tongding Interconnection Information is expected to generate 0.58 times more return on investment than Chongqing Road. However, Tongding Interconnection Information is 1.72 times less risky than Chongqing Road. It trades about 0.22 of its potential returns per unit of risk. Chongqing Road Bridge is currently generating about 0.07 per unit of risk. If you would invest 447.00 in Tongding Interconnection Information on September 13, 2024 and sell it today you would earn a total of 46.00 from holding Tongding Interconnection Information or generate 10.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongding Interconnection Infor vs. Chongqing Road Bridge
Performance |
| Timeline |
| Tongding Interconnection |
| Chongqing Road Bridge |
Tongding Interconnection and Chongqing Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Chongqing Road
The main advantage of trading using opposite Tongding Interconnection and Chongqing Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection position performs unexpectedly, Chongqing Road 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 Chongqing Road will offset losses from the drop in Chongqing Road's long position.| Tongding Interconnection vs. Industrial and Commercial | Tongding Interconnection vs. China Construction Bank | Tongding Interconnection vs. Bank of China | Tongding Interconnection vs. Agricultural Bank of |
| Chongqing Road vs. Hubeiyichang Transportation Group | Chongqing Road vs. Zhejiang Qianjiang Motorcycle | Chongqing Road vs. Dongfeng Automobile Co | Chongqing Road vs. Harbin Hatou Investment |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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