Correlation Between Tongyu Communication and China World
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By analyzing existing cross correlation between Tongyu Communication and China World Trade, you can compare the effects of market volatilities on Tongyu Communication and China World 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 China World. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and China World.
Diversification Opportunities for Tongyu Communication and China World
-0.26 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tongyu and China is -0.26. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and China World Trade in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China World Trade 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 China World. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China World Trade has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and China World go up and down completely randomly.
Pair Corralation between Tongyu Communication and China World
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the China World. In addition to that, Tongyu Communication is 2.88 times more volatile than China World Trade. It trades about -0.09 of its total potential returns per unit of risk. China World Trade is currently generating about -0.02 per unit of volatility. If you would invest 2,400 in China World Trade on October 20, 2024 and sell it today you would lose (14.00) from holding China World Trade or give up 0.58% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. China World Trade
Performance |
| Timeline |
| Tongyu Communication |
| China World Trade |
Tongyu Communication and China World Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and China World
The main advantage of trading using opposite Tongyu Communication and China World positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, China World 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 China World will offset losses from the drop in China World's long position.| Tongyu Communication vs. China Sports Industry | Tongyu Communication vs. Kangxin New Materials | Tongyu Communication vs. CSSC Offshore Marine | Tongyu Communication vs. Orinko Advanced Plastics |
| China World vs. Spring Airlines Co | China World vs. Longxing Chemical Stock | China World vs. Xilong Chemical Co | China World vs. Lianhe Chemical Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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