Correlation Between Tongyu Communication and Beijing Yanjing
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By analyzing existing cross correlation between Tongyu Communication and Beijing Yanjing Brewery, you can compare the effects of market volatilities on Tongyu Communication and Beijing Yanjing 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 Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Beijing Yanjing.
Diversification Opportunities for Tongyu Communication and Beijing Yanjing
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and Beijing is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery 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 Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Beijing Yanjing go up and down completely randomly.
Pair Corralation between Tongyu Communication and Beijing Yanjing
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.72 times more return on investment than Beijing Yanjing. However, Tongyu Communication is 1.72 times more volatile than Beijing Yanjing Brewery. It trades about 0.1 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.05 per unit of risk. If you would invest 1,140 in Tongyu Communication on September 1, 2024 and sell it today you would earn a total of 513.00 from holding Tongyu Communication or generate 45.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| Tongyu Communication |
| Beijing Yanjing Brewery |
Tongyu Communication and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Beijing Yanjing
The main advantage of trading using opposite Tongyu Communication and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. Kweichow Moutai Co | Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Mobile Limited |
| Beijing Yanjing vs. BeiGene | Beijing Yanjing vs. Kweichow Moutai Co | Beijing Yanjing vs. Beijing Roborock Technology | Beijing Yanjing vs. G bits Network Technology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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