Correlation Between Tongyu Communication and Suzhou Oriental
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By analyzing existing cross correlation between Tongyu Communication and Suzhou Oriental Semiconductor, you can compare the effects of market volatilities on Tongyu Communication and Suzhou Oriental 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 Suzhou Oriental. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Suzhou Oriental.
Diversification Opportunities for Tongyu Communication and Suzhou Oriental
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Tongyu and Suzhou is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Suzhou Oriental Semiconductor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Oriental Semi 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 Suzhou Oriental. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Oriental Semi has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Suzhou Oriental go up and down completely randomly.
Pair Corralation between Tongyu Communication and Suzhou Oriental
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 1.15 times more return on investment than Suzhou Oriental. However, Tongyu Communication is 1.15 times more volatile than Suzhou Oriental Semiconductor. It trades about -0.19 of its potential returns per unit of risk. Suzhou Oriental Semiconductor is currently generating about -0.38 per unit of risk. If you would invest 1,635 in Tongyu Communication on October 11, 2024 and sell it today you would lose (208.00) from holding Tongyu Communication or give up 12.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongyu Communication vs. Suzhou Oriental Semiconductor
Performance |
| Timeline |
| Tongyu Communication |
| Suzhou Oriental Semi |
Tongyu Communication and Suzhou Oriental Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Suzhou Oriental
The main advantage of trading using opposite Tongyu Communication and Suzhou Oriental positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Suzhou Oriental 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 Suzhou Oriental will offset losses from the drop in Suzhou Oriental's long position.| Tongyu Communication vs. Emdoor Information Co | Tongyu Communication vs. Konfoong Materials International | Tongyu Communication vs. Sanxiang Advanced Materials | Tongyu Communication vs. Keda Clean Energy |
| Suzhou Oriental vs. Zhangjiagang Freetrade Science | Suzhou Oriental vs. Longxing Chemical Stock | Suzhou Oriental vs. Shenyang Chemical Industry | Suzhou Oriental vs. Guangdong Transtek Medical |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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