Correlation Between Tongyu Communication and Yingde Greatchem
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By analyzing existing cross correlation between Tongyu Communication and Yingde Greatchem Chemicals, you can compare the effects of market volatilities on Tongyu Communication and Yingde Greatchem 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 Yingde Greatchem. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Yingde Greatchem.
Diversification Opportunities for Tongyu Communication and Yingde Greatchem
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and Yingde is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Yingde Greatchem Chemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yingde Greatchem Che 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 Yingde Greatchem. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yingde Greatchem Che has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Yingde Greatchem go up and down completely randomly.
Pair Corralation between Tongyu Communication and Yingde Greatchem
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the Yingde Greatchem. In addition to that, Tongyu Communication is 1.26 times more volatile than Yingde Greatchem Chemicals. It trades about -0.12 of its total potential returns per unit of risk. Yingde Greatchem Chemicals is currently generating about -0.1 per unit of volatility. If you would invest 2,545 in Yingde Greatchem Chemicals on October 30, 2024 and sell it today you would lose (220.00) from holding Yingde Greatchem Chemicals or give up 8.64% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Yingde Greatchem Chemicals
Performance |
| Timeline |
| Tongyu Communication |
| Yingde Greatchem Che |
Tongyu Communication and Yingde Greatchem Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Yingde Greatchem
The main advantage of trading using opposite Tongyu Communication and Yingde Greatchem positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Yingde Greatchem 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 Yingde Greatchem will offset losses from the drop in Yingde Greatchem's long position.| Tongyu Communication vs. Bus Online Co | Tongyu Communication vs. Holitech Technology Co | Tongyu Communication vs. Gome Telecom Equipment | Tongyu Communication vs. Cultural Investment Holdings |
| Yingde Greatchem vs. Zijin Mining Group | Yingde Greatchem vs. Wanhua Chemical Group | Yingde Greatchem vs. Baoshan Iron Steel | Yingde Greatchem vs. Shandong Gold Mining |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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