Correlation Between Tongding Interconnection and Hefei Metalforming
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongding Interconnection Information and Hefei Metalforming Mach, you can compare the effects of market volatilities on Tongding Interconnection and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongding Interconnection and Hefei Metalforming.
Diversification Opportunities for Tongding Interconnection and Hefei Metalforming
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongding and Hefei is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Tongding Interconnection Infor and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of Tongding Interconnection i.e., Tongding Interconnection and Hefei Metalforming go up and down completely randomly.
Pair Corralation between Tongding Interconnection and Hefei Metalforming
Assuming the 90 days trading horizon Tongding Interconnection is expected to generate 1.18 times less return on investment than Hefei Metalforming. But when comparing it to its historical volatility, Tongding Interconnection Information is 1.82 times less risky than Hefei Metalforming. It trades about 0.15 of its potential returns per unit of risk. Hefei Metalforming Mach is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 730.00 in Hefei Metalforming Mach on September 3, 2024 and sell it today you would earn a total of 49.00 from holding Hefei Metalforming Mach or generate 6.71% 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. Hefei Metalforming Mach
Performance |
| Timeline |
| Tongding Interconnection |
| Hefei Metalforming Mach |
Tongding Interconnection and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongding Interconnection and Hefei Metalforming
The main advantage of trading using opposite Tongding Interconnection and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongding Interconnection position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| Tongding Interconnection vs. V V Food | Tongding Interconnection vs. Hainan Airlines Co | Tongding Interconnection vs. HaiXin Foods Co | Tongding Interconnection vs. Beijing Sanyuan Foods |
| Hefei Metalforming vs. Cultural Investment Holdings | Hefei Metalforming vs. Gome Telecom Equipment | Hefei Metalforming vs. Bus Online Co | Hefei Metalforming vs. Holitech Technology Co |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |