Correlation Between Tongyu Communication and Jiangsu Xinning
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By analyzing existing cross correlation between Tongyu Communication and Jiangsu Xinning Modern, you can compare the effects of market volatilities on Tongyu Communication and Jiangsu Xinning 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 Jiangsu Xinning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Jiangsu Xinning.
Diversification Opportunities for Tongyu Communication and Jiangsu Xinning
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongyu and Jiangsu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Jiangsu Xinning Modern in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangsu Xinning Modern 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 Jiangsu Xinning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangsu Xinning Modern has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Jiangsu Xinning go up and down completely randomly.
Pair Corralation between Tongyu Communication and Jiangsu Xinning
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.82 times more return on investment than Jiangsu Xinning. However, Tongyu Communication is 1.22 times less risky than Jiangsu Xinning. It trades about 0.05 of its potential returns per unit of risk. Jiangsu Xinning Modern is currently generating about 0.03 per unit of risk. If you would invest 1,064 in Tongyu Communication on September 12, 2024 and sell it today you would earn a total of 571.00 from holding Tongyu Communication or generate 53.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Jiangsu Xinning Modern
Performance |
| Timeline |
| Tongyu Communication |
| Jiangsu Xinning Modern |
Tongyu Communication and Jiangsu Xinning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Jiangsu Xinning
The main advantage of trading using opposite Tongyu Communication and Jiangsu Xinning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Jiangsu Xinning 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 Jiangsu Xinning will offset losses from the drop in Jiangsu Xinning's long position.| Tongyu Communication vs. Gansu Jiu Steel | Tongyu Communication vs. Shandong Mining Machinery | Tongyu Communication vs. Aba Chemicals Corp | Tongyu Communication vs. BlueFocus Communication Group |
| Jiangsu Xinning vs. Tongyu Communication | Jiangsu Xinning vs. China Satellite Communications | Jiangsu Xinning vs. Guangxi Wuzhou Communications | Jiangsu Xinning vs. Shandong Mining Machinery |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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