Correlation Between Longmaster Information and Tengda Construction
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By analyzing existing cross correlation between Longmaster Information Tech and Tengda Construction Group, you can compare the effects of market volatilities on Longmaster Information and Tengda Construction 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 Longmaster Information with a short position of Tengda Construction. Check out your portfolio center. Please also check ongoing floating volatility patterns of Longmaster Information and Tengda Construction.
Diversification Opportunities for Longmaster Information and Tengda Construction
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Longmaster and Tengda is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Longmaster Information Tech and Tengda Construction Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tengda Construction and Longmaster 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 Longmaster Information Tech are associated (or correlated) with Tengda Construction. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tengda Construction has no effect on the direction of Longmaster Information i.e., Longmaster Information and Tengda Construction go up and down completely randomly.
Pair Corralation between Longmaster Information and Tengda Construction
Assuming the 90 days trading horizon Longmaster Information Tech is expected to generate 2.0 times more return on investment than Tengda Construction. However, Longmaster Information is 2.0 times more volatile than Tengda Construction Group. It trades about 0.03 of its potential returns per unit of risk. Tengda Construction Group is currently generating about 0.0 per unit of risk. If you would invest 1,594 in Longmaster Information Tech on September 12, 2024 and sell it today you would earn a total of 313.00 from holding Longmaster Information Tech or generate 19.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Longmaster Information Tech vs. Tengda Construction Group
Performance |
| Timeline |
| Longmaster Information |
| Tengda Construction |
Longmaster Information and Tengda Construction Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Longmaster Information and Tengda Construction
The main advantage of trading using opposite Longmaster Information and Tengda Construction positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Longmaster Information position performs unexpectedly, Tengda Construction 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 Tengda Construction will offset losses from the drop in Tengda Construction's long position.| Longmaster Information vs. Cultural Investment Holdings | Longmaster Information vs. Gome Telecom Equipment | Longmaster Information vs. Holitech Technology Co | Longmaster Information vs. Zotye Automobile Co |
| Tengda Construction vs. Agricultural Bank of | Tengda Construction vs. Industrial and Commercial | Tengda Construction vs. Bank of China | Tengda Construction vs. PetroChina Co Ltd |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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