Correlation Between Shanghai Material and TongFu Microelectronics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shanghai Material Trading and TongFu Microelectronics Co, you can compare the effects of market volatilities on Shanghai Material and TongFu Microelectronics 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 Shanghai Material with a short position of TongFu Microelectronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Material and TongFu Microelectronics.
Diversification Opportunities for Shanghai Material and TongFu Microelectronics
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and TongFu is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Material Trading and TongFu Microelectronics Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TongFu Microelectronics and Shanghai Material 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 Shanghai Material Trading are associated (or correlated) with TongFu Microelectronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TongFu Microelectronics has no effect on the direction of Shanghai Material i.e., Shanghai Material and TongFu Microelectronics go up and down completely randomly.
Pair Corralation between Shanghai Material and TongFu Microelectronics
Assuming the 90 days trading horizon Shanghai Material is expected to generate 1.76 times less return on investment than TongFu Microelectronics. But when comparing it to its historical volatility, Shanghai Material Trading is 1.01 times less risky than TongFu Microelectronics. It trades about 0.03 of its potential returns per unit of risk. TongFu Microelectronics Co is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 2,043 in TongFu Microelectronics Co on November 3, 2024 and sell it today you would earn a total of 787.00 from holding TongFu Microelectronics Co or generate 38.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Material Trading vs. TongFu Microelectronics Co
Performance |
| Timeline |
| Shanghai Material Trading |
| TongFu Microelectronics |
Shanghai Material and TongFu Microelectronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Material and TongFu Microelectronics
The main advantage of trading using opposite Shanghai Material and TongFu Microelectronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Material position performs unexpectedly, TongFu Microelectronics 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 TongFu Microelectronics will offset losses from the drop in TongFu Microelectronics' long position.| Shanghai Material vs. Youyou Foods Co | Shanghai Material vs. XinJiang GuoTong Pipeline | Shanghai Material vs. Beijing Kaiwen Education | Shanghai Material vs. Shanghai Ziyan Foods |
| TongFu Microelectronics vs. Soyea Technology Co | TongFu Microelectronics vs. Keeson Technology Corp | TongFu Microelectronics vs. Bohai Leasing Co | TongFu Microelectronics vs. Sunny Loan Top |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
Other Complementary Tools
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators |