Correlation Between Tongyu Communication and Jiangxi JDL
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By analyzing existing cross correlation between Tongyu Communication and Jiangxi JDL Environmental, you can compare the effects of market volatilities on Tongyu Communication and Jiangxi JDL 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 Jiangxi JDL. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Jiangxi JDL.
Diversification Opportunities for Tongyu Communication and Jiangxi JDL
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongyu and Jiangxi is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Jiangxi JDL Environmental in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jiangxi JDL Environmental 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 Jiangxi JDL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jiangxi JDL Environmental has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Jiangxi JDL go up and down completely randomly.
Pair Corralation between Tongyu Communication and Jiangxi JDL
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.84 times more return on investment than Jiangxi JDL. However, Tongyu Communication is 1.84 times more volatile than Jiangxi JDL Environmental. It trades about 0.06 of its potential returns per unit of risk. Jiangxi JDL Environmental is currently generating about 0.0 per unit of risk. If you would invest 849.00 in Tongyu Communication on September 3, 2024 and sell it today you would earn a total of 804.00 from holding Tongyu Communication or generate 94.7% 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. Jiangxi JDL Environmental
Performance |
| Timeline |
| Tongyu Communication |
| Jiangxi JDL Environmental |
Tongyu Communication and Jiangxi JDL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Jiangxi JDL
The main advantage of trading using opposite Tongyu Communication and Jiangxi JDL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Jiangxi JDL 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 Jiangxi JDL will offset losses from the drop in Jiangxi JDL's long position.| Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Postal Savings Bank | Tongyu Communication vs. Bank of Communications |
| Jiangxi JDL vs. Cultural Investment Holdings | Jiangxi JDL vs. Gome Telecom Equipment | Jiangxi JDL vs. Bus Online Co | Jiangxi JDL vs. Holitech Technology 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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