Correlation Between Tongyu Communication and ZYF Lopsking
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By analyzing existing cross correlation between Tongyu Communication and ZYF Lopsking Aluminum, you can compare the effects of market volatilities on Tongyu Communication and ZYF Lopsking 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 ZYF Lopsking. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and ZYF Lopsking.
Diversification Opportunities for Tongyu Communication and ZYF Lopsking
0.64 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongyu and ZYF is 0.64. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and ZYF Lopsking Aluminum in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ZYF Lopsking Aluminum 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 ZYF Lopsking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ZYF Lopsking Aluminum has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and ZYF Lopsking go up and down completely randomly.
Pair Corralation between Tongyu Communication and ZYF Lopsking
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.44 times more return on investment than ZYF Lopsking. However, Tongyu Communication is 1.44 times more volatile than ZYF Lopsking Aluminum. It trades about -0.17 of its potential returns per unit of risk. ZYF Lopsking Aluminum is currently generating about -0.4 per unit of risk. If you would invest 1,561 in Tongyu Communication on October 15, 2024 and sell it today you would lose (174.00) from holding Tongyu Communication or give up 11.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. ZYF Lopsking Aluminum
Performance |
| Timeline |
| Tongyu Communication |
| ZYF Lopsking Aluminum |
Tongyu Communication and ZYF Lopsking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and ZYF Lopsking
The main advantage of trading using opposite Tongyu Communication and ZYF Lopsking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, ZYF Lopsking 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 ZYF Lopsking will offset losses from the drop in ZYF Lopsking's long position.| Tongyu Communication vs. Haima Automobile Group | Tongyu Communication vs. Allwin Telecommunication Co | Tongyu Communication vs. Suzhou Industrial Park | Tongyu Communication vs. Jonjee Hi tech Industrial |
| ZYF Lopsking vs. Tongyu Communication | ZYF Lopsking vs. Guangxi Wuzhou Communications | ZYF Lopsking vs. Allwin Telecommunication Co | ZYF Lopsking vs. Nanjing Putian Telecommunications |
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 Portfolio Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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