Correlation Between Zhangjiagang Freetrade and Tongyu Communication
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and Tongyu Communication, you can compare the effects of market volatilities on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and Tongyu Communication.
Diversification Opportunities for Zhangjiagang Freetrade and Tongyu Communication
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Zhangjiagang and Tongyu is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and Tongyu Communication go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and Tongyu Communication
Assuming the 90 days trading horizon Zhangjiagang Freetrade is expected to generate 1.87 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, Zhangjiagang Freetrade Science is 1.59 times less risky than Tongyu Communication. It trades about 0.18 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest 1,035 in Tongyu Communication on September 2, 2024 and sell it today you would earn a total of 618.00 from holding Tongyu Communication or generate 59.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. Tongyu Communication
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| Tongyu Communication |
Zhangjiagang Freetrade and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and Tongyu Communication
The main advantage of trading using opposite Zhangjiagang Freetrade and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade 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.| Zhangjiagang Freetrade vs. Industrial and Commercial | Zhangjiagang Freetrade vs. Agricultural Bank of | Zhangjiagang Freetrade vs. China Construction Bank | Zhangjiagang Freetrade vs. Bank of China |
| Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. Kweichow Moutai Co | Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Mobile Limited |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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