Correlation Between Tongyu Communication and Yili Chuanning
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By analyzing existing cross correlation between Tongyu Communication and Yili Chuanning Biotechnology, you can compare the effects of market volatilities on Tongyu Communication and Yili Chuanning 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 Yili Chuanning. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Yili Chuanning.
Diversification Opportunities for Tongyu Communication and Yili Chuanning
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tongyu and Yili is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Yili Chuanning Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yili Chuanning Biote 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 Yili Chuanning. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yili Chuanning Biote has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Yili Chuanning go up and down completely randomly.
Pair Corralation between Tongyu Communication and Yili Chuanning
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 2.2 times more return on investment than Yili Chuanning. However, Tongyu Communication is 2.2 times more volatile than Yili Chuanning Biotechnology. It trades about 0.22 of its potential returns per unit of risk. Yili Chuanning Biotechnology is currently generating about -0.26 per unit of risk. If you would invest 1,331 in Tongyu Communication on September 3, 2024 and sell it today you would earn a total of 322.00 from holding Tongyu Communication or generate 24.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Yili Chuanning Biotechnology
Performance |
| Timeline |
| Tongyu Communication |
| Yili Chuanning Biote |
Tongyu Communication and Yili Chuanning Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Yili Chuanning
The main advantage of trading using opposite Tongyu Communication and Yili Chuanning positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Yili Chuanning 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 Yili Chuanning will offset losses from the drop in Yili Chuanning'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 |
| Yili Chuanning vs. Chengdu Kanghua Biological | Yili Chuanning vs. Beijing Wantai Biological | Yili Chuanning vs. Suzhou Novoprotein Scientific | Yili Chuanning vs. Aluminum Corp of |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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