Correlation Between Ingenic Semiconductor and Tongyu Communication
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By analyzing existing cross correlation between Ingenic Semiconductor and Tongyu Communication, you can compare the effects of market volatilities on Ingenic Semiconductor 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 Ingenic Semiconductor with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ingenic Semiconductor and Tongyu Communication.
Diversification Opportunities for Ingenic Semiconductor and Tongyu Communication
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Ingenic and Tongyu is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding Ingenic Semiconductor and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Ingenic Semiconductor 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 Ingenic Semiconductor 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 Ingenic Semiconductor i.e., Ingenic Semiconductor and Tongyu Communication go up and down completely randomly.
Pair Corralation between Ingenic Semiconductor and Tongyu Communication
Assuming the 90 days trading horizon Ingenic Semiconductor is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Ingenic Semiconductor is 1.15 times less risky than Tongyu Communication. The stock trades about 0.0 of its potential returns per unit of risk. The Tongyu Communication is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 887.00 in Tongyu Communication on October 14, 2024 and sell it today you would earn a total of 500.00 from holding Tongyu Communication or generate 56.37% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ingenic Semiconductor vs. Tongyu Communication
Performance |
| Timeline |
| Ingenic Semiconductor |
| Tongyu Communication |
Ingenic Semiconductor and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ingenic Semiconductor and Tongyu Communication
The main advantage of trading using opposite Ingenic Semiconductor and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ingenic Semiconductor 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.| Ingenic Semiconductor vs. Longjian Road Bridge | Ingenic Semiconductor vs. Jiangsu GDK Biotechnology | Ingenic Semiconductor vs. Wuhan Hvsen Biotechnology | Ingenic Semiconductor vs. Jinhe Biotechnology Co |
| Tongyu Communication vs. Ingenic Semiconductor | Tongyu Communication vs. StarPower Semiconductor | Tongyu Communication vs. Beijing Jiaman Dress | Tongyu Communication vs. Nexchip Semiconductor Corp |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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