Correlation Between GUOMAI Culture and Tongyu Communication
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By analyzing existing cross correlation between GUOMAI Culture Media and Tongyu Communication, you can compare the effects of market volatilities on GUOMAI Culture 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 GUOMAI Culture with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of GUOMAI Culture and Tongyu Communication.
Diversification Opportunities for GUOMAI Culture and Tongyu Communication
0.29 | Correlation Coefficient |
Modest diversification
The 3 months correlation between GUOMAI and Tongyu is 0.29. Overlapping area represents the amount of risk that can be diversified away by holding GUOMAI Culture Media and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and GUOMAI Culture 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 GUOMAI Culture Media 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 GUOMAI Culture i.e., GUOMAI Culture and Tongyu Communication go up and down completely randomly.
Pair Corralation between GUOMAI Culture and Tongyu Communication
Assuming the 90 days trading horizon GUOMAI Culture Media is expected to under-perform the Tongyu Communication. In addition to that, GUOMAI Culture is 1.31 times more volatile than Tongyu Communication. It trades about -0.01 of its total potential returns per unit of risk. Tongyu Communication is currently generating about 0.03 per unit of volatility. If you would invest 1,225 in Tongyu Communication on October 16, 2024 and sell it today you would earn a total of 134.00 from holding Tongyu Communication or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
GUOMAI Culture Media vs. Tongyu Communication
Performance |
| Timeline |
| GUOMAI Culture Media |
| Tongyu Communication |
GUOMAI Culture and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with GUOMAI Culture and Tongyu Communication
The main advantage of trading using opposite GUOMAI Culture and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if GUOMAI Culture 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.| GUOMAI Culture vs. GRINM Semiconductor Materials | GUOMAI Culture vs. StarPower Semiconductor | GUOMAI Culture vs. Semiconductor Manufacturing Intl | GUOMAI Culture vs. Will Semiconductor Co |
| Tongyu Communication vs. Guangdong Jingyi Metal | Tongyu Communication vs. Chengtun Mining Group | Tongyu Communication vs. Western Metal Materials | Tongyu Communication vs. Shanghai Broadband Technology |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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