Correlation Between Tongyu Communication and Shenzhen Silver
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By analyzing existing cross correlation between Tongyu Communication and Shenzhen Silver Basis, you can compare the effects of market volatilities on Tongyu Communication and Shenzhen Silver 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 Shenzhen Silver. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Shenzhen Silver.
Diversification Opportunities for Tongyu Communication and Shenzhen Silver
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tongyu and Shenzhen is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Shenzhen Silver Basis in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Silver Basis 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 Shenzhen Silver. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Silver Basis has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Shenzhen Silver go up and down completely randomly.
Pair Corralation between Tongyu Communication and Shenzhen Silver
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.93 times more return on investment than Shenzhen Silver. However, Tongyu Communication is 1.08 times less risky than Shenzhen Silver. It trades about -0.12 of its potential returns per unit of risk. Shenzhen Silver Basis is currently generating about -0.19 per unit of risk. If you would invest 1,653 in Tongyu Communication on October 30, 2024 and sell it today you would lose (222.00) from holding Tongyu Communication or give up 13.43% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Shenzhen Silver Basis
Performance |
| Timeline |
| Tongyu Communication |
| Shenzhen Silver Basis |
Tongyu Communication and Shenzhen Silver Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Shenzhen Silver
The main advantage of trading using opposite Tongyu Communication and Shenzhen Silver positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Shenzhen Silver 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 Shenzhen Silver will offset losses from the drop in Shenzhen Silver's long position.| Tongyu Communication vs. Bus Online Co | Tongyu Communication vs. Holitech Technology Co | Tongyu Communication vs. Gome Telecom Equipment | Tongyu Communication vs. Cultural Investment Holdings |
| Shenzhen Silver vs. Uroica Mining Safety | Shenzhen Silver vs. Xinjiang Baodi Mining | Shenzhen Silver vs. Bosera CMSK Industrial | Shenzhen Silver vs. Gem Year Industrial 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 CEOs Directory module to screen CEOs from public companies around the world.
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