Correlation Between Tongyu Communication and Zhongyin Babi
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By analyzing existing cross correlation between Tongyu Communication and Zhongyin Babi Food, you can compare the effects of market volatilities on Tongyu Communication and Zhongyin Babi 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 Zhongyin Babi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Zhongyin Babi.
Diversification Opportunities for Tongyu Communication and Zhongyin Babi
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and Zhongyin is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Zhongyin Babi Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongyin Babi Food 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 Zhongyin Babi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongyin Babi Food has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Zhongyin Babi go up and down completely randomly.
Pair Corralation between Tongyu Communication and Zhongyin Babi
Assuming the 90 days trading horizon Tongyu Communication is expected to under-perform the Zhongyin Babi. But the stock apears to be less risky and, when comparing its historical volatility, Tongyu Communication is 1.29 times less risky than Zhongyin Babi. The stock trades about -0.29 of its potential returns per unit of risk. The Zhongyin Babi Food is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,753 in Zhongyin Babi Food on October 9, 2024 and sell it today you would lose (103.00) from holding Zhongyin Babi Food or give up 5.88% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Zhongyin Babi Food
Performance |
| Timeline |
| Tongyu Communication |
| Zhongyin Babi Food |
Tongyu Communication and Zhongyin Babi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Zhongyin Babi
The main advantage of trading using opposite Tongyu Communication and Zhongyin Babi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Zhongyin Babi 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 Zhongyin Babi will offset losses from the drop in Zhongyin Babi's long position.| Tongyu Communication vs. Kweichow Moutai Co | Tongyu Communication vs. NAURA Technology Group | Tongyu Communication vs. Zhejiang Orient Gene | Tongyu Communication vs. APT Medical |
| Zhongyin Babi vs. Tibet Huayu Mining | Zhongyin Babi vs. Qinghaihuading Industrial Co | Zhongyin Babi vs. Masterwork Machinery | Zhongyin Babi vs. Lutian Machinery Co |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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