Correlation Between Tongyu Communication and Zhejiang Yayi
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By analyzing existing cross correlation between Tongyu Communication and Zhejiang Yayi Metal, you can compare the effects of market volatilities on Tongyu Communication and Zhejiang Yayi 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 Zhejiang Yayi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Zhejiang Yayi.
Diversification Opportunities for Tongyu Communication and Zhejiang Yayi
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongyu and Zhejiang is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Zhejiang Yayi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yayi Metal 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 Zhejiang Yayi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yayi Metal has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Zhejiang Yayi go up and down completely randomly.
Pair Corralation between Tongyu Communication and Zhejiang Yayi
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the Zhejiang Yayi. In addition to that, Tongyu Communication is 1.34 times more volatile than Zhejiang Yayi Metal. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang Yayi Metal is currently generating about -0.02 per unit of volatility. If you would invest 2,439 in Zhejiang Yayi Metal on October 23, 2024 and sell it today you would lose (33.00) from holding Zhejiang Yayi Metal or give up 1.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Zhejiang Yayi Metal
Performance |
| Timeline |
| Tongyu Communication |
| Zhejiang Yayi Metal |
Tongyu Communication and Zhejiang Yayi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Zhejiang Yayi
The main advantage of trading using opposite Tongyu Communication and Zhejiang Yayi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Zhejiang Yayi 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 Zhejiang Yayi will offset losses from the drop in Zhejiang Yayi's long position.| Tongyu Communication vs. CITIC Guoan Information | Tongyu Communication vs. Luyin Investment Group | Tongyu Communication vs. Metro Investment Development | Tongyu Communication vs. Harbin Hatou Investment |
| Zhejiang Yayi vs. Porton Fine Chemicals | Zhejiang Yayi vs. Silkroad Visual Technology | Zhejiang Yayi vs. Jiangsu Broadcasting Cable | Zhejiang Yayi vs. Zhejiang Kingland Pipeline |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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