Correlation Between Tongyu Communication and Shenzhen Fortune
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By analyzing existing cross correlation between Tongyu Communication and Shenzhen Fortune Trend, you can compare the effects of market volatilities on Tongyu Communication and Shenzhen Fortune 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 Shenzhen Fortune. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Shenzhen Fortune.
Diversification Opportunities for Tongyu Communication and Shenzhen Fortune
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Tongyu and Shenzhen is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Shenzhen Fortune Trend in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fortune Trend 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 Shenzhen Fortune. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fortune Trend has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Shenzhen Fortune go up and down completely randomly.
Pair Corralation between Tongyu Communication and Shenzhen Fortune
Assuming the 90 days trading horizon Tongyu Communication is expected to generate 0.91 times more return on investment than Shenzhen Fortune. However, Tongyu Communication is 1.1 times less risky than Shenzhen Fortune. It trades about -0.05 of its potential returns per unit of risk. Shenzhen Fortune Trend is currently generating about -0.16 per unit of risk. If you would invest 1,510 in Tongyu Communication on October 24, 2024 and sell it today you would lose (62.00) from holding Tongyu Communication or give up 4.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.45% |
| Values | Daily Returns |
Tongyu Communication vs. Shenzhen Fortune Trend
Performance |
| Timeline |
| Tongyu Communication |
| Shenzhen Fortune Trend |
Tongyu Communication and Shenzhen Fortune Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongyu Communication and Shenzhen Fortune
The main advantage of trading using opposite Tongyu Communication and Shenzhen Fortune positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Shenzhen Fortune 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 Shenzhen Fortune will offset losses from the drop in Shenzhen Fortune's long position.| Tongyu Communication vs. Nuode Investment Co | Tongyu Communication vs. Hubei Geoway Investment | Tongyu Communication vs. Shaanxi Broadcast TV | Tongyu Communication vs. Highbroad Advanced Material |
| Shenzhen Fortune vs. Shandong Publishing Media | Shenzhen Fortune vs. Xinhua Winshare Publishing | Shenzhen Fortune vs. Caihong Display Devices | Shenzhen Fortune vs. Tongyu Communication |
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 AI Portfolio Architect module to use AI to generate optimal portfolios and find profitable investment opportunities.
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