Correlation Between Tongyu Communication and Chengdu Kanghua
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By analyzing existing cross correlation between Tongyu Communication and Chengdu Kanghua Biological, you can compare the effects of market volatilities on Tongyu Communication and Chengdu Kanghua 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 Chengdu Kanghua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Chengdu Kanghua.
Diversification Opportunities for Tongyu Communication and Chengdu Kanghua
0.57 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and Chengdu is 0.57. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Chengdu Kanghua Biological in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Kanghua Biol 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 Chengdu Kanghua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Kanghua Biol has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Chengdu Kanghua go up and down completely randomly.
Pair Corralation between Tongyu Communication and Chengdu Kanghua
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.86 times more return on investment than Chengdu Kanghua. However, Tongyu Communication is 1.17 times less risky than Chengdu Kanghua. It trades about 0.2 of its potential returns per unit of risk. Chengdu Kanghua Biological is currently generating about 0.06 per unit of risk. If you would invest 1,068 in Tongyu Communication on September 3, 2024 and sell it today you would earn a total of 585.00 from holding Tongyu Communication or generate 54.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Chengdu Kanghua Biological
Performance |
| Timeline |
| Tongyu Communication |
| Chengdu Kanghua Biol |
Tongyu Communication and Chengdu Kanghua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Chengdu Kanghua
The main advantage of trading using opposite Tongyu Communication and Chengdu Kanghua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Chengdu Kanghua 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 Chengdu Kanghua will offset losses from the drop in Chengdu Kanghua's long position.| Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Postal Savings Bank | Tongyu Communication vs. Bank of Communications |
| Chengdu Kanghua vs. Chengdu Xinzhu RoadBridge | Chengdu Kanghua vs. China Life Insurance | Chengdu Kanghua vs. Shaanxi Broadcast TV | Chengdu Kanghua vs. Tianshan Aluminum Group |
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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