Correlation Between AVCON Information and Tongyu Communication
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By analyzing existing cross correlation between AVCON Information Tech and Tongyu Communication, you can compare the effects of market volatilities on AVCON Information 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 AVCON Information with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of AVCON Information and Tongyu Communication.
Diversification Opportunities for AVCON Information and Tongyu Communication
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between AVCON and Tongyu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding AVCON Information Tech and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and AVCON Information 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 AVCON Information Tech 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 AVCON Information i.e., AVCON Information and Tongyu Communication go up and down completely randomly.
Pair Corralation between AVCON Information and Tongyu Communication
Assuming the 90 days trading horizon AVCON Information Tech is expected to under-perform the Tongyu Communication. In addition to that, AVCON Information is 1.38 times more volatile than Tongyu Communication. It trades about -0.26 of its total potential returns per unit of risk. Tongyu Communication is currently generating about -0.15 per unit of volatility. If you would invest 1,561 in Tongyu Communication on October 17, 2024 and sell it today you would lose (166.00) from holding Tongyu Communication or give up 10.63% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
AVCON Information Tech vs. Tongyu Communication
Performance |
| Timeline |
| AVCON Information Tech |
| Tongyu Communication |
AVCON Information and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with AVCON Information and Tongyu Communication
The main advantage of trading using opposite AVCON Information and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if AVCON Information 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.| AVCON Information vs. Sportsoul Co Ltd | AVCON Information vs. Heilongjiang Publishing Media | AVCON Information vs. Duzhe Publishing Media | AVCON Information vs. Shuhua Sports Co |
| Tongyu Communication vs. Rising Nonferrous Metals | Tongyu Communication vs. Offshore Oil Engineering | Tongyu Communication vs. Jiangxi Naipu Mining | Tongyu Communication vs. Zhejiang Kingland Pipeline |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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