Correlation Between Zhongtong Guomai and Allwin Telecommunicatio
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Allwin Telecommunication Co, you can compare the effects of market volatilities on Zhongtong Guomai and Allwin Telecommunicatio 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 Zhongtong Guomai with a short position of Allwin Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Allwin Telecommunicatio.
Diversification Opportunities for Zhongtong Guomai and Allwin Telecommunicatio
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and Allwin is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Allwin Telecommunication Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Allwin Telecommunicatio and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with Allwin Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Allwin Telecommunicatio has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and Allwin Telecommunicatio go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Allwin Telecommunicatio
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 0.88 times more return on investment than Allwin Telecommunicatio. However, Zhongtong Guomai Communication is 1.13 times less risky than Allwin Telecommunicatio. It trades about 0.01 of its potential returns per unit of risk. Allwin Telecommunication Co is currently generating about 0.0 per unit of risk. If you would invest 1,341 in Zhongtong Guomai Communication on August 24, 2024 and sell it today you would lose (101.00) from holding Zhongtong Guomai Communication or give up 7.53% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Allwin Telecommunication Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Allwin Telecommunicatio |
Zhongtong Guomai and Allwin Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Allwin Telecommunicatio
The main advantage of trading using opposite Zhongtong Guomai and Allwin Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, Allwin Telecommunicatio 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 Allwin Telecommunicatio will offset losses from the drop in Allwin Telecommunicatio's long position.| Zhongtong Guomai vs. Hengkang Medical Group | Zhongtong Guomai vs. CareRay Digital Medical | Zhongtong Guomai vs. State Grid InformationCommunication | Zhongtong Guomai vs. Blue Sail Medical |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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