Correlation Between Tongyu Communication and Guangzhou Dongfang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongyu Communication and Guangzhou Dongfang Hotel, you can compare the effects of market volatilities on Tongyu Communication and Guangzhou Dongfang 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 Tongyu Communication with a short position of Guangzhou Dongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Guangzhou Dongfang.
Diversification Opportunities for Tongyu Communication and Guangzhou Dongfang
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Guangzhou is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Guangzhou Dongfang Hotel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Dongfang Hotel and Tongyu Communication 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 Tongyu Communication are associated (or correlated) with Guangzhou Dongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Dongfang Hotel has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Guangzhou Dongfang go up and down completely randomly.
Pair Corralation between Tongyu Communication and Guangzhou Dongfang
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 2.85 times more return on investment than Guangzhou Dongfang. However, Tongyu Communication is 2.85 times more volatile than Guangzhou Dongfang Hotel. It trades about 0.24 of its potential returns per unit of risk. Guangzhou Dongfang Hotel is currently generating about 0.18 per unit of risk. If you would invest 1,331 in Tongyu Communication on September 4, 2024 and sell it today you would earn a total of 355.00 from holding Tongyu Communication or generate 26.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Guangzhou Dongfang Hotel
Performance |
| Timeline |
| Tongyu Communication |
| Guangzhou Dongfang Hotel |
Tongyu Communication and Guangzhou Dongfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Guangzhou Dongfang
The main advantage of trading using opposite Tongyu Communication and Guangzhou Dongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Guangzhou Dongfang 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 Guangzhou Dongfang will offset losses from the drop in Guangzhou Dongfang's long position.| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China | Tongyu Communication vs. Agricultural Bank of |
| Guangzhou Dongfang vs. Biwin Storage Technology | Guangzhou Dongfang vs. PetroChina Co Ltd | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. China Construction Bank |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Earnings Calls Check upcoming earnings announcements updated hourly across public exchanges | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum |