Correlation Between Zhongtong Guomai and Tongyu Communication
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By analyzing existing cross correlation between Zhongtong Guomai Communication and Tongyu Communication, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and Tongyu Communication.
Diversification Opportunities for Zhongtong Guomai and Tongyu Communication
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongtong and Tongyu is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 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 Zhongtong Guomai i.e., Zhongtong Guomai and Tongyu Communication go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and Tongyu Communication
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to generate 1.08 times more return on investment than Tongyu Communication. However, Zhongtong Guomai is 1.08 times more volatile than Tongyu Communication. It trades about 0.2 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.1 per unit of risk. If you would invest 465.00 in Zhongtong Guomai Communication on September 1, 2024 and sell it today you would earn a total of 656.00 from holding Zhongtong Guomai Communication or generate 141.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. Tongyu Communication
Performance |
| Timeline |
| Zhongtong Guomai Com |
| Tongyu Communication |
Zhongtong Guomai and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and Tongyu Communication
The main advantage of trading using opposite Zhongtong Guomai and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Chengdu B ray Media | Zhongtong Guomai vs. Mango Excellent Media | Zhongtong Guomai vs. Focus Media Information | Zhongtong Guomai vs. JiShi Media Co |
| 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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