Correlation Between Green World and Tong Hsing
Can any of the company-specific risk be diversified away by investing in both Green World and Tong Hsing at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Green World and Tong Hsing into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Green World Fintech and Tong Hsing Electronic, you can compare the effects of market volatilities on Green World and Tong Hsing 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 Green World with a short position of Tong Hsing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Green World and Tong Hsing.
Diversification Opportunities for Green World and Tong Hsing
-0.59 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Green and Tong is -0.59. Overlapping area represents the amount of risk that can be diversified away by holding Green World Fintech and Tong Hsing Electronic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tong Hsing Electronic and Green World 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 Green World Fintech are associated (or correlated) with Tong Hsing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tong Hsing Electronic has no effect on the direction of Green World i.e., Green World and Tong Hsing go up and down completely randomly.
Pair Corralation between Green World and Tong Hsing
Assuming the 90 days trading horizon Green World Fintech is expected to generate 1.43 times more return on investment than Tong Hsing. However, Green World is 1.43 times more volatile than Tong Hsing Electronic. It trades about 0.08 of its potential returns per unit of risk. Tong Hsing Electronic is currently generating about -0.02 per unit of risk. If you would invest 2,110 in Green World Fintech on September 23, 2024 and sell it today you would earn a total of 4,090 from holding Green World Fintech or generate 193.84% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 99.79% |
Values | Daily Returns |
Green World Fintech vs. Tong Hsing Electronic
Performance |
Timeline |
Green World Fintech |
Tong Hsing Electronic |
Green World and Tong Hsing Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Green World and Tong Hsing
The main advantage of trading using opposite Green World and Tong Hsing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Green World position performs unexpectedly, Tong Hsing 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 Tong Hsing will offset losses from the drop in Tong Hsing's long position.Green World vs. Digital China Holdings | Green World vs. Acer E Enabling Service | Green World vs. Sysage Technology Co | Green World vs. Genesis Technology |
Tong Hsing vs. Century Wind Power | Tong Hsing vs. Green World Fintech | Tong Hsing vs. Ingentec | Tong Hsing vs. Chaheng Precision 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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
Transaction History View history of all your transactions and understand their impact on performance | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
Money Managers Screen money managers from public funds and ETFs managed around the world | |
Insider Screener Find insiders across different sectors to evaluate their impact on performance |