Correlation Between TianJin 712 and Tongyu Communication
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By analyzing existing cross correlation between TianJin 712 Communication and Tongyu Communication, you can compare the effects of market volatilities on TianJin 712 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 TianJin 712 with a short position of Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of TianJin 712 and Tongyu Communication.
Diversification Opportunities for TianJin 712 and Tongyu Communication
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between TianJin and Tongyu is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding TianJin 712 Communication and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication and TianJin 712 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 TianJin 712 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 TianJin 712 i.e., TianJin 712 and Tongyu Communication go up and down completely randomly.
Pair Corralation between TianJin 712 and Tongyu Communication
Assuming the 90 days trading horizon TianJin 712 Communication is expected to generate 1.17 times more return on investment than Tongyu Communication. However, TianJin 712 is 1.17 times more volatile than Tongyu Communication. It trades about 0.3 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.14 per unit of risk. If you would invest 1,618 in TianJin 712 Communication on December 6, 2024 and sell it today you would earn a total of 339.00 from holding TianJin 712 Communication or generate 20.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TianJin 712 Communication vs. Tongyu Communication
Performance |
| Timeline |
| TianJin 712 Communication |
| Tongyu Communication |
TianJin 712 and Tongyu Communication Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TianJin 712 and Tongyu Communication
The main advantage of trading using opposite TianJin 712 and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TianJin 712 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.| TianJin 712 vs. Shanghai Xinhua Media | TianJin 712 vs. Hengli Petrochemical Co | TianJin 712 vs. Miracll Chemicals Co | TianJin 712 vs. Guizhou Chanhen Chemical |
| Tongyu Communication vs. Hua Xia Bank | Tongyu Communication vs. Cofoe Medical Technology | Tongyu Communication vs. Hengkang Medical Group | Tongyu Communication vs. Winner Medical Co |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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