Correlation Between China Enterprise and Tongyu Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Enterprise Co and Tongyu Communication, you can compare the effects of market volatilities on China Enterprise 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 China Enterprise with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Enterprise and Tongyu Communication.
Diversification Opportunities for China Enterprise and Tongyu Communication
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Tongyu is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding China Enterprise Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and China Enterprise 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 China Enterprise 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 China Enterprise i.e., China Enterprise and Tongyu Communication go up and down completely randomly.
Pair Corralation between China Enterprise and Tongyu Communication
Assuming the 90 days trading horizon China Enterprise Co is expected to generate 1.43 times more return on investment than Tongyu Communication. However, China Enterprise is 1.43 times more volatile than Tongyu Communication. It trades about -0.04 of its potential returns per unit of risk. Tongyu Communication is currently generating about -0.11 per unit of risk. If you would invest 300.00 in China Enterprise Co on September 29, 2024 and sell it today you would lose (10.00) from holding China Enterprise Co or give up 3.33% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Enterprise Co vs. Tongyu Communication
Performance |
| Timeline |
| China Enterprise |
| Tongyu Communication |
China Enterprise and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Enterprise and Tongyu Communication
The main advantage of trading using opposite China Enterprise and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Enterprise 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.| China Enterprise vs. Tongyu Communication | China Enterprise vs. Miracll Chemicals Co | China Enterprise vs. Fiberhome Telecommunication Technologies | China Enterprise vs. SUNSEA Telecommunications Co |
| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. |