Correlation Between Juewei Food and Tongyu Communication
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By analyzing existing cross correlation between Juewei Food Co and Tongyu Communication, you can compare the effects of market volatilities on Juewei Food 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 Juewei Food with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Juewei Food and Tongyu Communication.
Diversification Opportunities for Juewei Food and Tongyu Communication
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Juewei and Tongyu is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Juewei Food Co and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and Juewei Food 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 Juewei Food 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 Juewei Food i.e., Juewei Food and Tongyu Communication go up and down completely randomly.
Pair Corralation between Juewei Food and Tongyu Communication
Assuming the 90 days trading horizon Juewei Food Co is expected to under-perform the Tongyu Communication. But the stock apears to be less risky and, when comparing its historical volatility, Juewei Food Co is 1.24 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 0.06 of returns per unit of risk over similar time horizon. If you would invest 1,162 in Tongyu Communication on September 3, 2024 and sell it today you would earn a total of 491.00 from holding Tongyu Communication or generate 42.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Juewei Food Co vs. Tongyu Communication
Performance |
| Timeline |
| Juewei Food |
| Tongyu Communication |
Juewei Food and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Juewei Food and Tongyu Communication
The main advantage of trading using opposite Juewei Food and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Juewei Food 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.| Juewei Food vs. Beijing Wantai Biological | Juewei Food vs. Aluminum Corp of | Juewei Food vs. COL Digital Publishing | Juewei Food vs. Shaanxi Meineng Clean |
| Tongyu Communication vs. Agricultural Bank of | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Postal Savings Bank | Tongyu Communication vs. Bank of Communications |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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