Correlation Between Gan Yuan and TongFu Microelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Gan Yuan Foods and TongFu Microelectronics Co, you can compare the effects of market volatilities on Gan Yuan and TongFu Microelectronics 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 Gan Yuan with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gan Yuan and TongFu Microelectronics.
Diversification Opportunities for Gan Yuan and TongFu Microelectronics
-0.2 | Correlation Coefficient |
Good diversification
The 3 months correlation between Gan and TongFu is -0.2. Overlapping area represents the amount of risk that can be diversified away by holding Gan Yuan Foods and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Gan Yuan 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 Gan Yuan Foods are associated (or correlated) with TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Gan Yuan i.e., Gan Yuan and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Gan Yuan and TongFu Microelectronics
Assuming the 90 days trading horizon Gan Yuan is expected to generate 3.65 times less return on investment than TongFu Microelectronics. In addition to that, Gan Yuan is 1.28 times more volatile than TongFu Microelectronics Co. It trades about 0.04 of its total potential returns per unit of risk. TongFu Microelectronics Co is currently generating about 0.2 per unit of volatility. If you would invest 2,642 in TongFu Microelectronics Co on November 5, 2024 and sell it today you would earn a total of 188.00 from holding TongFu Microelectronics Co or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gan Yuan Foods vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Gan Yuan Foods |
| TongFu Microelectronics |
Gan Yuan and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gan Yuan and TongFu Microelectronics
The main advantage of trading using opposite Gan Yuan and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gan Yuan position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| Gan Yuan vs. Guangzhou Jinyi Media | Gan Yuan vs. Ningbo Ligong Online | Gan Yuan vs. CICT Mobile Communication | Gan Yuan vs. Beijing Enlight Media |
| TongFu Microelectronics vs. Financial Street Holdings | TongFu Microelectronics vs. Unisplendour Corp | TongFu Microelectronics vs. Postal Savings Bank | TongFu Microelectronics vs. China Asset Management |
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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |