Correlation Between Jiangsu Xinning and Tongyu Communication
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By analyzing existing cross correlation between Jiangsu Xinning Modern and Tongyu Communication, you can compare the effects of market volatilities on Jiangsu Xinning 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 Jiangsu Xinning with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinning and Tongyu Communication.
Diversification Opportunities for Jiangsu Xinning and Tongyu Communication
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jiangsu and Tongyu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinning Modern and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Jiangsu Xinning 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 Jiangsu Xinning Modern 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 Jiangsu Xinning i.e., Jiangsu Xinning and Tongyu Communication go up and down completely randomly.
Pair Corralation between Jiangsu Xinning and Tongyu Communication
Assuming the 90 days trading horizon Jiangsu Xinning Modern is expected to generate 0.92 times more return on investment than Tongyu Communication. However, Jiangsu Xinning Modern is 1.09 times less risky than Tongyu Communication. It trades about 0.14 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.02 per unit of risk. If you would invest 387.00 in Jiangsu Xinning Modern on September 13, 2024 and sell it today you would earn a total of 42.00 from holding Jiangsu Xinning Modern or generate 10.85% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinning Modern vs. Tongyu Communication
Performance |
| Timeline |
| Jiangsu Xinning Modern |
| Tongyu Communication |
Jiangsu Xinning and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinning and Tongyu Communication
The main advantage of trading using opposite Jiangsu Xinning and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinning 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.| Jiangsu Xinning vs. Heilongjiang Publishing Media | Jiangsu Xinning vs. Digital China Information | Jiangsu Xinning vs. AVCON Information Tech | Jiangsu Xinning vs. Datang HuaYin Electric |
| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China | Tongyu Communication vs. Agricultural Bank 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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