Correlation Between Jiangxi Copper and Tongyu Communication
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By analyzing existing cross correlation between Jiangxi Copper Co and Tongyu Communication, you can compare the effects of market volatilities on Jiangxi Copper 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 Jiangxi Copper with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Copper and Tongyu Communication.
Diversification Opportunities for Jiangxi Copper and Tongyu Communication
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Jiangxi and Tongyu is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Copper Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Jiangxi Copper 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 Jiangxi Copper 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 Jiangxi Copper i.e., Jiangxi Copper and Tongyu Communication go up and down completely randomly.
Pair Corralation between Jiangxi Copper and Tongyu Communication
Assuming the 90 days trading horizon Jiangxi Copper is expected to generate 1.57 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, Jiangxi Copper Co is 1.72 times less risky than Tongyu Communication. It trades about 0.05 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 1,307 in Tongyu Communication on September 3, 2024 and sell it today you would earn a total of 379.00 from holding Tongyu Communication or generate 29.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Copper Co vs. Tongyu Communication
Performance |
| Timeline |
| Jiangxi Copper |
| Tongyu Communication |
Jiangxi Copper and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Copper and Tongyu Communication
The main advantage of trading using opposite Jiangxi Copper and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Copper 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.| Jiangxi Copper vs. Bangyan Technology Co | Jiangxi Copper vs. Xiandai Investment Co | Jiangxi Copper vs. Chengdu Xingrong Investment | Jiangxi Copper vs. Luyin Investment Group |
| Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Postal Savings Bank | Tongyu Communication vs. Bank of Communications |
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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