Correlation Between Tongyu Communication and Suzhou Fushilai
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By analyzing existing cross correlation between Tongyu Communication and Suzhou Fushilai Pharmaceutical, you can compare the effects of market volatilities on Tongyu Communication and Suzhou Fushilai 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 Suzhou Fushilai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Suzhou Fushilai.
Diversification Opportunities for Tongyu Communication and Suzhou Fushilai
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Suzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Suzhou Fushilai Pharmaceutical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Fushilai Phar 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 Suzhou Fushilai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Fushilai Phar has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Suzhou Fushilai go up and down completely randomly.
Pair Corralation between Tongyu Communication and Suzhou Fushilai
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.92 times more return on investment than Suzhou Fushilai. However, Tongyu Communication is 1.09 times less risky than Suzhou Fushilai. It trades about 0.03 of its potential returns per unit of risk. Suzhou Fushilai Pharmaceutical is currently generating about 0.0 per unit of risk. If you would invest 1,413 in Tongyu Communication on September 14, 2024 and sell it today you would earn a total of 224.00 from holding Tongyu Communication or generate 15.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.62% |
| Values | Daily Returns |
Tongyu Communication vs. Suzhou Fushilai Pharmaceutical
Performance |
| Timeline |
| Tongyu Communication |
| Suzhou Fushilai Phar |
Tongyu Communication and Suzhou Fushilai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Suzhou Fushilai
The main advantage of trading using opposite Tongyu Communication and Suzhou Fushilai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Suzhou Fushilai 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 Suzhou Fushilai will offset losses from the drop in Suzhou Fushilai'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 |
| Suzhou Fushilai vs. Fujian Newland Computer | Suzhou Fushilai vs. Guangzhou Haige Communications | Suzhou Fushilai vs. Jinling Hotel Corp | Suzhou Fushilai vs. Tongyu Communication |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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