Correlation Between Tongyu Communication and Gemdale Corp
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By analyzing existing cross correlation between Tongyu Communication and Gemdale Corp, you can compare the effects of market volatilities on Tongyu Communication and Gemdale Corp 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 Gemdale Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Gemdale Corp.
Diversification Opportunities for Tongyu Communication and Gemdale Corp
0.01 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Tongyu and Gemdale is 0.01. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Gemdale Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gemdale Corp 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 Gemdale Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gemdale Corp has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Gemdale Corp go up and down completely randomly.
Pair Corralation between Tongyu Communication and Gemdale Corp
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.41 times more return on investment than Gemdale Corp. However, Tongyu Communication is 1.41 times more volatile than Gemdale Corp. It trades about -0.19 of its potential returns per unit of risk. Gemdale Corp is currently generating about -0.41 per unit of risk. If you would invest 1,635 in Tongyu Communication on October 11, 2024 and sell it today you would lose (208.00) from holding Tongyu Communication or give up 12.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Gemdale Corp
Performance |
| Timeline |
| Tongyu Communication |
| Gemdale Corp |
Tongyu Communication and Gemdale Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Gemdale Corp
The main advantage of trading using opposite Tongyu Communication and Gemdale Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Gemdale Corp 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 Gemdale Corp will offset losses from the drop in Gemdale Corp's long position.| Tongyu Communication vs. Emdoor Information Co | Tongyu Communication vs. Konfoong Materials International | Tongyu Communication vs. Sanxiang Advanced Materials | Tongyu Communication vs. Keda Clean Energy |
| Gemdale Corp vs. RoadMain T Co | Gemdale Corp vs. Shanghai Shibei Hi Tech | Gemdale Corp vs. Tianjin Hi Tech Development | Gemdale Corp 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 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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