Correlation Between Tongxing Environmental and JiShi Media
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By analyzing existing cross correlation between Tongxing Environmental Protection and JiShi Media Co, you can compare the effects of market volatilities on Tongxing Environmental and JiShi Media 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 Tongxing Environmental with a short position of JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongxing Environmental and JiShi Media.
Diversification Opportunities for Tongxing Environmental and JiShi Media
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongxing and JiShi is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Tongxing Environmental Protect and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media and Tongxing Environmental 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 Tongxing Environmental Protection are associated (or correlated) with JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of Tongxing Environmental i.e., Tongxing Environmental and JiShi Media go up and down completely randomly.
Pair Corralation between Tongxing Environmental and JiShi Media
Assuming the 90 days trading horizon Tongxing Environmental Protection is expected to generate 0.73 times more return on investment than JiShi Media. However, Tongxing Environmental Protection is 1.38 times less risky than JiShi Media. It trades about 0.31 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.04 per unit of risk. If you would invest 1,362 in Tongxing Environmental Protection on August 25, 2024 and sell it today you would earn a total of 309.00 from holding Tongxing Environmental Protection or generate 22.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tongxing Environmental Protect vs. JiShi Media Co
Performance |
| Timeline |
| Tongxing Environmental |
| JiShi Media |
Tongxing Environmental and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongxing Environmental and JiShi Media
The main advantage of trading using opposite Tongxing Environmental and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongxing Environmental position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| Tongxing Environmental vs. China Petroleum Chemical | Tongxing Environmental vs. PetroChina Co Ltd | Tongxing Environmental vs. China State Construction | Tongxing Environmental vs. China Railway Group |
| JiShi Media vs. Chengdu Kanghua Biological | JiShi Media vs. Beijing Wantai Biological | JiShi Media vs. Suzhou Novoprotein Scientific | JiShi Media vs. Aluminum Corp of |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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