Correlation Between Tongyu Communication and Huaxia Eye
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By analyzing existing cross correlation between Tongyu Communication and Huaxia Eye Hospital, you can compare the effects of market volatilities on Tongyu Communication and Huaxia Eye 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 Huaxia Eye. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Huaxia Eye.
Diversification Opportunities for Tongyu Communication and Huaxia Eye
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tongyu and Huaxia is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Huaxia Eye Hospital in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaxia Eye Hospital 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 Huaxia Eye. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaxia Eye Hospital has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Huaxia Eye go up and down completely randomly.
Pair Corralation between Tongyu Communication and Huaxia Eye
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.79 times more return on investment than Huaxia Eye. However, Tongyu Communication is 1.79 times more volatile than Huaxia Eye Hospital. It trades about -0.04 of its potential returns per unit of risk. Huaxia Eye Hospital is currently generating about -0.23 per unit of risk. If you would invest 1,553 in Tongyu Communication on October 16, 2024 and sell it today you would lose (139.00) from holding Tongyu Communication or give up 8.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Huaxia Eye Hospital
Performance |
| Timeline |
| Tongyu Communication |
| Huaxia Eye Hospital |
Tongyu Communication and Huaxia Eye Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Huaxia Eye
The main advantage of trading using opposite Tongyu Communication and Huaxia Eye positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Huaxia Eye 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 Huaxia Eye will offset losses from the drop in Huaxia Eye's long position.| Tongyu Communication vs. Cicc Fund Management | Tongyu Communication vs. Shenzhen Topway Video | Tongyu Communication vs. Cangzhou Mingzhu Plastic | Tongyu Communication vs. Orinko Advanced Plastics |
| Huaxia Eye vs. Shandong Longquan Pipeline | Huaxia Eye vs. Guangdong Shenglu Telecommunication | Huaxia Eye vs. Tongyu Communication | Huaxia Eye vs. Hongrun Construction 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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