Correlation Between Chengdu B and Tongyu Communication
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By analyzing existing cross correlation between Chengdu B ray Media and Tongyu Communication, you can compare the effects of market volatilities on Chengdu B 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 Chengdu B with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu B and Tongyu Communication.
Diversification Opportunities for Chengdu B and Tongyu Communication
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Tongyu is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu B ray Media and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Chengdu B 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 Chengdu B ray Media 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 Chengdu B i.e., Chengdu B and Tongyu Communication go up and down completely randomly.
Pair Corralation between Chengdu B and Tongyu Communication
Assuming the 90 days trading horizon Chengdu B ray Media is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Chengdu B ray Media is 1.11 times less risky than Tongyu Communication. The stock trades about -0.01 of its potential returns per unit of risk. The Tongyu Communication is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,225 in Tongyu Communication on October 16, 2024 and sell it today you would earn a total of 134.00 from holding Tongyu Communication or generate 10.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu B ray Media vs. Tongyu Communication
Performance |
| Timeline |
| Chengdu B ray |
| Tongyu Communication |
Chengdu B and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu B and Tongyu Communication
The main advantage of trading using opposite Chengdu B and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu B 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.| Chengdu B vs. Vohringer Home Technology | Chengdu B vs. Arrow Home Group | Chengdu B vs. Zoy Home Furnishing | Chengdu B vs. Oppein Home Group |
| Tongyu Communication vs. Guangdong Jingyi Metal | Tongyu Communication vs. Chengtun Mining Group | Tongyu Communication vs. Western Metal Materials | Tongyu Communication vs. Shanghai Broadband Technology |
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 USA ETFs module to find actively traded Exchange Traded Funds (ETF) in USA.
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