Correlation Between Tongyu Communication and Shanxi Lanhua
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongyu Communication and Shanxi Lanhua Sci Tech, you can compare the effects of market volatilities on Tongyu Communication and Shanxi Lanhua 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 Shanxi Lanhua. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Shanxi Lanhua.
Diversification Opportunities for Tongyu Communication and Shanxi Lanhua
0.31 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tongyu and Shanxi is 0.31. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Shanxi Lanhua Sci Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanxi Lanhua Sci 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 Shanxi Lanhua. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanxi Lanhua Sci has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Shanxi Lanhua go up and down completely randomly.
Pair Corralation between Tongyu Communication and Shanxi Lanhua
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.48 times more return on investment than Shanxi Lanhua. However, Tongyu Communication is 1.48 times more volatile than Shanxi Lanhua Sci Tech. It trades about 0.14 of its potential returns per unit of risk. Shanxi Lanhua Sci Tech is currently generating about 0.06 per unit of risk. If you would invest 974.00 in Tongyu Communication on September 21, 2024 and sell it today you would earn a total of 566.00 from holding Tongyu Communication or generate 58.11% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Shanxi Lanhua Sci Tech
Performance |
| Timeline |
| Tongyu Communication |
| Shanxi Lanhua Sci |
Tongyu Communication and Shanxi Lanhua Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Shanxi Lanhua
The main advantage of trading using opposite Tongyu Communication and Shanxi Lanhua positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Shanxi Lanhua 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 Shanxi Lanhua will offset losses from the drop in Shanxi Lanhua's long position.| Tongyu Communication vs. Iat Automobile Technology | Tongyu Communication vs. Changchun Faway Automobile | Tongyu Communication vs. Dongfeng Automobile Co | Tongyu Communication vs. Gan Yuan Foods |
| Shanxi Lanhua vs. Tongyu Communication | Shanxi Lanhua vs. Guangdong Shenglu Telecommunication | Shanxi Lanhua vs. Xinjiang Communications Construction | Shanxi Lanhua vs. Zhongshan Public Utilities |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
Other Complementary Tools
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |