Correlation Between V V and Tongding Interconnection
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By analyzing existing cross correlation between V V Food and Tongding Interconnection Information, you can compare the effects of market volatilities on V V and Tongding Interconnection 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 V V with a short position of Tongding Interconnection. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Tongding Interconnection.
Diversification Opportunities for V V and Tongding Interconnection
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 600300 and Tongding is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Tongding Interconnection Infor in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongding Interconnection and V V 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 V V Food are associated (or correlated) with Tongding Interconnection. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongding Interconnection has no effect on the direction of V V i.e., V V and Tongding Interconnection go up and down completely randomly.
Pair Corralation between V V and Tongding Interconnection
Assuming the 90 days trading horizon V V Food is expected to generate 0.67 times more return on investment than Tongding Interconnection. However, V V Food is 1.48 times less risky than Tongding Interconnection. It trades about 0.02 of its potential returns per unit of risk. Tongding Interconnection Information is currently generating about -0.03 per unit of risk. If you would invest 310.00 in V V Food on September 4, 2024 and sell it today you would earn a total of 13.00 from holding V V Food or generate 4.19% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Tongding Interconnection Infor
Performance |
| Timeline |
| V V Food |
| Tongding Interconnection |
V V and Tongding Interconnection Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Tongding Interconnection
The main advantage of trading using opposite V V and Tongding Interconnection positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Tongding Interconnection 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 Tongding Interconnection will offset losses from the drop in Tongding Interconnection's long position.| V V vs. Vanfund Urban Investment | V V vs. Jiujiang Shanshui Technology | V V vs. Hunan Investment Group | V V vs. Kunwu Jiuding Investment |
| Tongding Interconnection vs. Qinghaihuading Industrial Co | Tongding Interconnection vs. Hainan Mining Co | Tongding Interconnection vs. Caihong Display Devices | Tongding Interconnection vs. Shuhua Sports Co |
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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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