Correlation Between Tongyu Communication and Hubei Yingtong
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By analyzing existing cross correlation between Tongyu Communication and Hubei Yingtong Telecommunication, you can compare the effects of market volatilities on Tongyu Communication and Hubei Yingtong 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 Hubei Yingtong. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Hubei Yingtong.
Diversification Opportunities for Tongyu Communication and Hubei Yingtong
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and Hubei is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Hubei Yingtong Telecommunicati in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hubei Yingtong Telec 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 Hubei Yingtong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hubei Yingtong Telec has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Hubei Yingtong go up and down completely randomly.
Pair Corralation between Tongyu Communication and Hubei Yingtong
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.99 times less return on investment than Hubei Yingtong. But when comparing it to its historical volatility, Tongyu Communication is 1.0 times less risky than Hubei Yingtong. It trades about 0.07 of its potential returns per unit of risk. Hubei Yingtong Telecommunication is currently generating about 0.14 of returns per unit of risk over similar time horizon. If you would invest 1,247 in Hubei Yingtong Telecommunication on September 18, 2024 and sell it today you would earn a total of 144.00 from holding Hubei Yingtong Telecommunication or generate 11.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tongyu Communication vs. Hubei Yingtong Telecommunicati
Performance |
| Timeline |
| Tongyu Communication |
| Hubei Yingtong Telec |
Tongyu Communication and Hubei Yingtong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Hubei Yingtong
The main advantage of trading using opposite Tongyu Communication and Hubei Yingtong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Hubei Yingtong 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 Hubei Yingtong will offset losses from the drop in Hubei Yingtong'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 |
| Hubei Yingtong vs. Industrial and Commercial | Hubei Yingtong vs. China Construction Bank | Hubei Yingtong vs. Bank of China | Hubei Yingtong vs. Agricultural Bank of |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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