Correlation Between Tongyu Communication and Kangyue Technology
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By analyzing existing cross correlation between Tongyu Communication and Kangyue Technology Co, you can compare the effects of market volatilities on Tongyu Communication and Kangyue Technology 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 Kangyue Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Kangyue Technology.
Diversification Opportunities for Tongyu Communication and Kangyue Technology
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Kangyue is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Kangyue Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kangyue Technology 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 Kangyue Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kangyue Technology has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Kangyue Technology go up and down completely randomly.
Pair Corralation between Tongyu Communication and Kangyue Technology
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.91 times more return on investment than Kangyue Technology. However, Tongyu Communication is 1.1 times less risky than Kangyue Technology. It trades about 0.02 of its potential returns per unit of risk. Kangyue Technology Co is currently generating about -0.14 per unit of risk. If you would invest 1,630 in Tongyu Communication on September 13, 2024 and sell it today you would earn a total of 8.00 from holding Tongyu Communication or generate 0.49% 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. Kangyue Technology Co
Performance |
| Timeline |
| Tongyu Communication |
| Kangyue Technology |
Tongyu Communication and Kangyue Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Kangyue Technology
The main advantage of trading using opposite Tongyu Communication and Kangyue Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Kangyue Technology 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 Kangyue Technology will offset losses from the drop in Kangyue Technology'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 |
| Kangyue Technology vs. Cultural Investment Holdings | Kangyue Technology vs. Gome Telecom Equipment | Kangyue Technology vs. Holitech Technology Co | Kangyue Technology vs. Zotye Automobile 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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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