Correlation Between Tongyu Communication and Guangzhou Jinyi
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By analyzing existing cross correlation between Tongyu Communication and Guangzhou Jinyi Media, you can compare the effects of market volatilities on Tongyu Communication and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Guangzhou Jinyi.
Diversification Opportunities for Tongyu Communication and Guangzhou Jinyi
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongyu and Guangzhou is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between Tongyu Communication and Guangzhou Jinyi
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.06 times more return on investment than Guangzhou Jinyi. However, Tongyu Communication is 1.06 times more volatile than Guangzhou Jinyi Media. It trades about 0.06 of its potential returns per unit of risk. Guangzhou Jinyi Media is currently generating about 0.01 per unit of risk. If you would invest 1,092 in Tongyu Communication on October 12, 2024 and sell it today you would earn a total of 335.00 from holding Tongyu Communication or generate 30.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Guangzhou Jinyi Media
Performance |
| Timeline |
| Tongyu Communication |
| Guangzhou Jinyi Media |
Tongyu Communication and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Guangzhou Jinyi
The main advantage of trading using opposite Tongyu Communication and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi's long position.| Tongyu Communication vs. Emdoor Information Co | Tongyu Communication vs. Konfoong Materials International | Tongyu Communication vs. Sanxiang Advanced Materials | Tongyu Communication vs. Keda Clean Energy |
| Guangzhou Jinyi vs. Weihai Honglin Electronic | Guangzhou Jinyi vs. Tongyu Communication | Guangzhou Jinyi vs. Jinlong Machinery Electronic | Guangzhou Jinyi vs. Techshine Electronics 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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