Correlation Between Zhejiang Zanyu and TongFu Microelectronics
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By analyzing existing cross correlation between Zhejiang Zanyu Technology and TongFu Microelectronics Co, you can compare the effects of market volatilities on Zhejiang Zanyu 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 Zhejiang Zanyu with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Zanyu and TongFu Microelectronics.
Diversification Opportunities for Zhejiang Zanyu and TongFu Microelectronics
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and TongFu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Zanyu Technology and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Zhejiang Zanyu 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 Zhejiang Zanyu Technology 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 Zhejiang Zanyu i.e., Zhejiang Zanyu and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Zhejiang Zanyu and TongFu Microelectronics
Assuming the 90 days trading horizon Zhejiang Zanyu Technology is expected to generate 0.98 times more return on investment than TongFu Microelectronics. However, Zhejiang Zanyu Technology is 1.02 times less risky than TongFu Microelectronics. It trades about 0.1 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about -0.23 per unit of risk. If you would invest 988.00 in Zhejiang Zanyu Technology on September 13, 2024 and sell it today you would earn a total of 70.00 from holding Zhejiang Zanyu Technology or generate 7.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhejiang Zanyu Technology vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Zhejiang Zanyu Technology |
| TongFu Microelectronics |
Zhejiang Zanyu and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Zanyu and TongFu Microelectronics
The main advantage of trading using opposite Zhejiang Zanyu and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Zanyu 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.| Zhejiang Zanyu vs. TongFu Microelectronics Co | Zhejiang Zanyu vs. Peoples Insurance of | Zhejiang Zanyu vs. Success Electronics | Zhejiang Zanyu vs. Epoxy Base Electronic |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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