Correlation Between Tongyu Communication and Lao Feng
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By analyzing existing cross correlation between Tongyu Communication and Lao Feng Xiang, you can compare the effects of market volatilities on Tongyu Communication and Lao Feng 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 Lao Feng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Lao Feng.
Diversification Opportunities for Tongyu Communication and Lao Feng
-0.18 | Correlation Coefficient |
Good diversification
The 3 months correlation between Tongyu and Lao is -0.18. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Lao Feng Xiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lao Feng Xiang 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 Lao Feng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lao Feng Xiang has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Lao Feng go up and down completely randomly.
Pair Corralation between Tongyu Communication and Lao Feng
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.7 times more return on investment than Lao Feng. However, Tongyu Communication is 1.7 times more volatile than Lao Feng Xiang. It trades about 0.05 of its potential returns per unit of risk. Lao Feng Xiang is currently generating about 0.0 per unit of risk. If you would invest 1,064 in Tongyu Communication on September 12, 2024 and sell it today you would earn a total of 571.00 from holding Tongyu Communication or generate 53.67% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Lao Feng Xiang
Performance |
| Timeline |
| Tongyu Communication |
| Lao Feng Xiang |
Tongyu Communication and Lao Feng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Lao Feng
The main advantage of trading using opposite Tongyu Communication and Lao Feng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Lao Feng 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 Lao Feng will offset losses from the drop in Lao Feng's long position.| Tongyu Communication vs. Gansu Jiu Steel | Tongyu Communication vs. Shandong Mining Machinery | Tongyu Communication vs. Aba Chemicals Corp | Tongyu Communication vs. BlueFocus Communication Group |
| Lao Feng vs. Sunwave Communications Co | Lao Feng vs. Dr Peng Telecom | Lao Feng vs. Tongyu Communication | Lao Feng vs. Guangdong Shenglu Telecommunication |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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