Correlation Between Tongyu Communication and Xinjiang Tianshun
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By analyzing existing cross correlation between Tongyu Communication and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on Tongyu Communication and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Xinjiang Tianshun.
Diversification Opportunities for Tongyu Communication and Xinjiang Tianshun
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Xinjiang is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between Tongyu Communication and Xinjiang Tianshun
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.23 times more return on investment than Xinjiang Tianshun. However, Tongyu Communication is 1.23 times more volatile than Xinjiang Tianshun Supply. It trades about 0.2 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 per unit of risk. If you would invest 1,058 in Tongyu Communication on September 12, 2024 and sell it today you would earn a total of 580.00 from holding Tongyu Communication or generate 54.82% 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. Xinjiang Tianshun Supply
Performance |
| Timeline |
| Tongyu Communication |
| Xinjiang Tianshun Supply |
Tongyu Communication and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Xinjiang Tianshun
The main advantage of trading using opposite Tongyu Communication and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun'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 |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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