Correlation Between GuoChuang Software and Tongyu Communication
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By analyzing existing cross correlation between GuoChuang Software Co and Tongyu Communication, you can compare the effects of market volatilities on GuoChuang Software 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 GuoChuang Software with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of GuoChuang Software and Tongyu Communication.
Diversification Opportunities for GuoChuang Software and Tongyu Communication
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between GuoChuang and Tongyu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding GuoChuang Software Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and GuoChuang Software 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 GuoChuang Software Co 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 GuoChuang Software i.e., GuoChuang Software and Tongyu Communication go up and down completely randomly.
Pair Corralation between GuoChuang Software and Tongyu Communication
Assuming the 90 days trading horizon GuoChuang Software is expected to generate 1.44 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, GuoChuang Software Co is 1.04 times less risky than Tongyu Communication. It trades about 0.15 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 1,331 in Tongyu Communication on September 5, 2024 and sell it today you would earn a total of 301.00 from holding Tongyu Communication or generate 22.61% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
GuoChuang Software Co vs. Tongyu Communication
Performance |
| Timeline |
| GuoChuang Software |
| Tongyu Communication |
GuoChuang Software and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GuoChuang Software and Tongyu Communication
The main advantage of trading using opposite GuoChuang Software and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GuoChuang Software 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.| GuoChuang Software vs. Tongyu Communication | GuoChuang Software vs. Touchstone International Medical | GuoChuang Software vs. Innovative Medical Management | GuoChuang Software vs. CareRay Digital Medical |
| 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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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