Correlation Between Tonghua Grape and Longmaster Information
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By analyzing existing cross correlation between Tonghua Grape Wine and Longmaster Information Tech, you can compare the effects of market volatilities on Tonghua Grape and Longmaster Information 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 Tonghua Grape with a short position of Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tonghua Grape and Longmaster Information.
Diversification Opportunities for Tonghua Grape and Longmaster Information
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Tonghua and Longmaster is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Tonghua Grape Wine and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information and Tonghua Grape 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 Tonghua Grape Wine are associated (or correlated) with Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Tonghua Grape i.e., Tonghua Grape and Longmaster Information go up and down completely randomly.
Pair Corralation between Tonghua Grape and Longmaster Information
Assuming the 90 days trading horizon Tonghua Grape Wine is expected to generate 0.98 times more return on investment than Longmaster Information. However, Tonghua Grape Wine is 1.03 times less risky than Longmaster Information. It trades about -0.16 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about -0.52 per unit of risk. If you would invest 302.00 in Tonghua Grape Wine on October 11, 2024 and sell it today you would lose (29.00) from holding Tonghua Grape Wine or give up 9.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tonghua Grape Wine vs. Longmaster Information Tech
Performance |
| Timeline |
| Tonghua Grape Wine |
| Longmaster Information |
Tonghua Grape and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tonghua Grape and Longmaster Information
The main advantage of trading using opposite Tonghua Grape and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tonghua Grape position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Tonghua Grape vs. Techshine Electronics Co | Tonghua Grape vs. Success Electronics | Tonghua Grape vs. Fuzhou Rockchip Electronics | Tonghua Grape vs. Integrated Electronic Systems |
| Longmaster Information vs. Omnijoi Media Corp | Longmaster Information vs. Guilin Seamild Foods | Longmaster Information vs. Shuhua Sports Co | Longmaster Information vs. Great Sun Foods 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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