Correlation Between Hubei Yingtong and Tongyu Communication
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and Tongyu Communication, you can compare the effects of market volatilities on Hubei Yingtong and Tongyu Communication 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 Hubei Yingtong with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and Tongyu Communication.
Diversification Opportunities for Hubei Yingtong and Tongyu Communication
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hubei and Tongyu is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Hubei Yingtong 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 Hubei Yingtong Telecommunication are associated (or correlated) with Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of Hubei Yingtong i.e., Hubei Yingtong and Tongyu Communication go up and down completely randomly.
Pair Corralation between Hubei Yingtong and Tongyu Communication
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to under-perform the Tongyu Communication. In addition to that, Hubei Yingtong is 1.73 times more volatile than Tongyu Communication. It trades about -0.11 of its total potential returns per unit of risk. Tongyu Communication is currently generating about 0.14 per unit of volatility. If you would invest 1,458 in Tongyu Communication on December 6, 2024 and sell it today you would earn a total of 108.00 from holding Tongyu Communication or generate 7.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. Tongyu Communication
Performance |
| Timeline |
| Hubei Yingtong Telec |
| Tongyu Communication |
Hubei Yingtong and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and Tongyu Communication
The main advantage of trading using opposite Hubei Yingtong and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.| Hubei Yingtong vs. Jiangsu Jinling Sports | Hubei Yingtong vs. Guangdong Jingyi Metal | Hubei Yingtong vs. Zhejiang Kingland Pipeline | Hubei Yingtong vs. Guangzhou Shangpin Home |
| Tongyu Communication vs. Hua Xia Bank | Tongyu Communication vs. Cofoe Medical Technology | Tongyu Communication vs. Hengkang Medical Group | Tongyu Communication vs. Winner Medical 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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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