Correlation Between Tongyu Communication and GUOMAI Culture
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By analyzing existing cross correlation between Tongyu Communication and GUOMAI Culture Media, you can compare the effects of market volatilities on Tongyu Communication and GUOMAI Culture 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 GUOMAI Culture. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and GUOMAI Culture.
Diversification Opportunities for Tongyu Communication and GUOMAI Culture
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Tongyu and GUOMAI is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and GUOMAI Culture Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GUOMAI Culture 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 GUOMAI Culture. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GUOMAI Culture Media has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and GUOMAI Culture go up and down completely randomly.
Pair Corralation between Tongyu Communication and GUOMAI Culture
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.76 times more return on investment than GUOMAI Culture. However, Tongyu Communication is 1.31 times less risky than GUOMAI Culture. It trades about 0.03 of its potential returns per unit of risk. GUOMAI Culture Media is currently generating about -0.01 per unit of risk. If you would invest 1,225 in Tongyu Communication on October 16, 2024 and sell it today you would earn a total of 134.00 from holding Tongyu Communication or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. GUOMAI Culture Media
Performance |
| Timeline |
| Tongyu Communication |
| GUOMAI Culture Media |
Tongyu Communication and GUOMAI Culture Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and GUOMAI Culture
The main advantage of trading using opposite Tongyu Communication and GUOMAI Culture positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, GUOMAI Culture 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 GUOMAI Culture will offset losses from the drop in GUOMAI Culture's long position.| Tongyu Communication vs. Guangdong Jingyi Metal | Tongyu Communication vs. Chengtun Mining Group | Tongyu Communication vs. Western Metal Materials | Tongyu Communication vs. Shanghai Broadband Technology |
| GUOMAI Culture vs. GRINM Semiconductor Materials | GUOMAI Culture vs. StarPower Semiconductor | GUOMAI Culture vs. Semiconductor Manufacturing Intl | GUOMAI Culture vs. Will Semiconductor 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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