Correlation Between XiaMen HongXin and TongFu Microelectronics
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By analyzing existing cross correlation between XiaMen HongXin Electron tech and TongFu Microelectronics Co, you can compare the effects of market volatilities on XiaMen HongXin and TongFu Microelectronics 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 XiaMen HongXin with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of XiaMen HongXin and TongFu Microelectronics.
Diversification Opportunities for XiaMen HongXin and TongFu Microelectronics
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between XiaMen and TongFu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding XiaMen HongXin Electron tech and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and XiaMen HongXin 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 XiaMen HongXin Electron tech are associated (or correlated) with TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of XiaMen HongXin i.e., XiaMen HongXin and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between XiaMen HongXin and TongFu Microelectronics
Assuming the 90 days trading horizon XiaMen HongXin Electron tech is expected to generate 1.69 times more return on investment than TongFu Microelectronics. However, XiaMen HongXin is 1.69 times more volatile than TongFu Microelectronics Co. It trades about 0.01 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about -0.03 per unit of risk. If you would invest 2,284 in XiaMen HongXin Electron tech on October 25, 2024 and sell it today you would lose (37.00) from holding XiaMen HongXin Electron tech or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
XiaMen HongXin Electron tech vs. TongFu Microelectronics Co
Performance |
| Timeline |
| XiaMen HongXin Electron |
| TongFu Microelectronics |
XiaMen HongXin and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with XiaMen HongXin and TongFu Microelectronics
The main advantage of trading using opposite XiaMen HongXin and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XiaMen HongXin position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| XiaMen HongXin vs. Kweichow Moutai Co | XiaMen HongXin vs. NAURA Technology Group | XiaMen HongXin vs. APT Medical | XiaMen HongXin vs. BYD Co Ltd |
| TongFu Microelectronics vs. Kweichow Moutai Co | TongFu Microelectronics vs. NAURA Technology Group | TongFu Microelectronics vs. APT Medical | TongFu Microelectronics vs. BYD 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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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