Correlation Between Tongyu Communication and Advanced Micro
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tongyu Communication and Advanced Micro Fabrication, you can compare the effects of market volatilities on Tongyu Communication and Advanced Micro 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 Advanced Micro. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Advanced Micro.
Diversification Opportunities for Tongyu Communication and Advanced Micro
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tongyu and Advanced is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Advanced Micro Fabrication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Micro Fabri 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 Advanced Micro. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Micro Fabri has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Advanced Micro go up and down completely randomly.
Pair Corralation between Tongyu Communication and Advanced Micro
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.22 times more return on investment than Advanced Micro. However, Tongyu Communication is 1.22 times more volatile than Advanced Micro Fabrication. It trades about 0.25 of its potential returns per unit of risk. Advanced Micro Fabrication is currently generating about 0.16 per unit of risk. If you would invest 1,360 in Tongyu Communication on August 26, 2024 and sell it today you would earn a total of 405.00 from holding Tongyu Communication or generate 29.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Advanced Micro Fabrication
Performance |
| Timeline |
| Tongyu Communication |
| Advanced Micro Fabri |
Tongyu Communication and Advanced Micro Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Advanced Micro
The main advantage of trading using opposite Tongyu Communication and Advanced Micro positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Advanced Micro 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 Advanced Micro will offset losses from the drop in Advanced Micro'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 |
| Advanced Micro vs. Wuhan Yangtze Communication | Advanced Micro vs. Tongyu Communication | Advanced Micro vs. Youyou Foods Co | Advanced Micro vs. Allwin Telecommunication 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |