Correlation Between Beijing Jiaman and Tongyu Communication
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By analyzing existing cross correlation between Beijing Jiaman Dress and Tongyu Communication, you can compare the effects of market volatilities on Beijing Jiaman 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 Beijing Jiaman with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Jiaman and Tongyu Communication.
Diversification Opportunities for Beijing Jiaman and Tongyu Communication
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Beijing and Tongyu is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Jiaman Dress and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Beijing Jiaman 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 Beijing Jiaman Dress 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 Beijing Jiaman i.e., Beijing Jiaman and Tongyu Communication go up and down completely randomly.
Pair Corralation between Beijing Jiaman and Tongyu Communication
Assuming the 90 days trading horizon Beijing Jiaman Dress is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Beijing Jiaman Dress is 1.66 times less risky than Tongyu Communication. The stock trades about -0.01 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 |
Beijing Jiaman Dress vs. Tongyu Communication
Performance |
| Timeline |
| Beijing Jiaman Dress |
| Tongyu Communication |
Beijing Jiaman and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Jiaman and Tongyu Communication
The main advantage of trading using opposite Beijing Jiaman and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Jiaman 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.| Beijing Jiaman vs. Postal Savings Bank | Beijing Jiaman vs. Beijing Mainstreets Investment | Beijing Jiaman vs. Aofu Environmental Technology | Beijing Jiaman vs. Qiaoyin Environmental Tech |
| 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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