Correlation Between Tongyu Communication and Hainan Mining
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By analyzing existing cross correlation between Tongyu Communication and Hainan Mining Co, you can compare the effects of market volatilities on Tongyu Communication and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Hainan Mining.
Diversification Opportunities for Tongyu Communication and Hainan Mining
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Hainan is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Hainan Mining go up and down completely randomly.
Pair Corralation between Tongyu Communication and Hainan Mining
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 2.61 times more return on investment than Hainan Mining. However, Tongyu Communication is 2.61 times more volatile than Hainan Mining Co. It trades about 0.2 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.08 per unit of risk. If you would invest 1,390 in Tongyu Communication on August 29, 2024 and sell it today you would earn a total of 320.00 from holding Tongyu Communication or generate 23.02% 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. Hainan Mining Co
Performance |
| Timeline |
| Tongyu Communication |
| Hainan Mining |
Tongyu Communication and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Hainan Mining
The main advantage of trading using opposite Tongyu Communication and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| Tongyu Communication vs. Shenzhen MYS Environmental | Tongyu Communication vs. AVIC Fund Management | Tongyu Communication vs. Shenzhen Bingchuan Network | Tongyu Communication vs. Penghua Shenzhen Energy |
| Hainan Mining vs. Wanhua Chemical Group | Hainan Mining vs. Shandong Gold Mining | Hainan Mining vs. Rongsheng Petrochemical Co | Hainan Mining vs. Inner Mongolia BaoTou |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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