Correlation Between ACM Research and Tsinghuatongfang
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By analyzing existing cross correlation between ACM Research Shanghai and Tsinghuatongfang Co, you can compare the effects of market volatilities on ACM Research and Tsinghuatongfang 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 ACM Research with a short position of Tsinghuatongfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of ACM Research and Tsinghuatongfang.
Diversification Opportunities for ACM Research and Tsinghuatongfang
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ACM and Tsinghuatongfang is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ACM Research Shanghai and Tsinghuatongfang Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tsinghuatongfang and ACM Research 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 ACM Research Shanghai are associated (or correlated) with Tsinghuatongfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tsinghuatongfang has no effect on the direction of ACM Research i.e., ACM Research and Tsinghuatongfang go up and down completely randomly.
Pair Corralation between ACM Research and Tsinghuatongfang
Assuming the 90 days trading horizon ACM Research is expected to generate 1.17 times less return on investment than Tsinghuatongfang. In addition to that, ACM Research is 1.17 times more volatile than Tsinghuatongfang Co. It trades about 0.14 of its total potential returns per unit of risk. Tsinghuatongfang Co is currently generating about 0.18 per unit of volatility. If you would invest 519.00 in Tsinghuatongfang Co on September 23, 2024 and sell it today you would earn a total of 245.00 from holding Tsinghuatongfang Co or generate 47.21% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
ACM Research Shanghai vs. Tsinghuatongfang Co
Performance |
Timeline |
ACM Research Shanghai |
Tsinghuatongfang |
ACM Research and Tsinghuatongfang Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with ACM Research and Tsinghuatongfang
The main advantage of trading using opposite ACM Research and Tsinghuatongfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ACM Research position performs unexpectedly, Tsinghuatongfang 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 Tsinghuatongfang will offset losses from the drop in Tsinghuatongfang's long position.ACM Research vs. Nanjing Putian Telecommunications | ACM Research vs. Tianjin Realty Development | ACM Research vs. Kangyue Technology Co | ACM Research vs. Shenzhen Hifuture Electric |
Tsinghuatongfang vs. Industrial and Commercial | Tsinghuatongfang vs. Agricultural Bank of | Tsinghuatongfang vs. China Construction Bank | Tsinghuatongfang vs. Bank of China |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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