Correlation Between Tongyu Communication and Zhongzhu Medical
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By analyzing existing cross correlation between Tongyu Communication and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on Tongyu Communication and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Zhongzhu Medical.
Diversification Opportunities for Tongyu Communication and Zhongzhu Medical
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Zhongzhu is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between Tongyu Communication and Zhongzhu Medical
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.87 times more return on investment than Zhongzhu Medical. However, Tongyu Communication is 1.87 times more volatile than Zhongzhu Medical Holdings. It trades about 0.07 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.03 per unit of risk. If you would invest 1,536 in Tongyu Communication on September 15, 2024 and sell it today you would earn a total of 72.00 from holding Tongyu Communication or generate 4.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Zhongzhu Medical Holdings
Performance |
| Timeline |
| Tongyu Communication |
| Zhongzhu Medical Holdings |
Tongyu Communication and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Zhongzhu Medical
The main advantage of trading using opposite Tongyu Communication and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical's long position.| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China | Tongyu Communication vs. Agricultural Bank of |
| Zhongzhu Medical vs. Zhongtong Guomai Communication | Zhongzhu Medical vs. Tongyu Communication | Zhongzhu Medical vs. Nanjing Putian Telecommunications | Zhongzhu Medical vs. Ping An Insurance |
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
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