Correlation Between Tongyu Communication and Shenzhen Fastprint

Can any of the company-specific risk be diversified away by investing in both Tongyu Communication and Shenzhen Fastprint 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 Tongyu Communication and Shenzhen Fastprint into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Tongyu Communication and Shenzhen Fastprint Circuit, you can compare the effects of market volatilities on Tongyu Communication and Shenzhen Fastprint 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 Tongyu Communication with a short position of Shenzhen Fastprint. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongyu Communication and Shenzhen Fastprint.

Diversification Opportunities for Tongyu Communication and Shenzhen Fastprint

0.8

Correlation Coefficient

Tongyu Communication  Shenzhen Fastprint

Very poor diversification

The 3 months correlation between Tongyu and Shenzhen is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Tongyu Communication and Shenzhen Fastprint Circuit in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Fastprint and Tongyu Communication 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 Tongyu Communication are associated (or correlated) with Shenzhen Fastprint. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Fastprint has no effect on the direction of Tongyu Communication i.e., Tongyu Communication and Shenzhen Fastprint go up and down completely randomly.

Pair Corralation between Tongyu Communication and Shenzhen Fastprint

Assuming the 90 days trading horizon Tongyu Communication is expected to generate 3.65 times less return on investment than Shenzhen Fastprint. But when comparing it to its historical volatility, Tongyu Communication is 1.56 times less risky than Shenzhen Fastprint. It trades about 0.09 of its potential returns per unit of risk. Shenzhen Fastprint Circuit is currently generating about 0.21 of returns per unit of risk over similar time horizon. If you would invest  1,069  in Shenzhen Fastprint Circuit on April 24, 2025 and sell it today you would earn a total of  396.00  from holding Shenzhen Fastprint Circuit or generate 37.04% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Strong
Accuracy	100.0%
Values	Daily Returns

Tongyu Communication  vs.  Shenzhen Fastprint Circuit

Tongyu Communication

Risk-Adjusted Performance

OK

Compared to the overall equity markets, risk-adjusted returns on investments in Tongyu Communication are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Tongyu Communication may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Shenzhen Fastprint

Risk-Adjusted Performance

Solid

Compared to the overall equity markets, risk-adjusted returns on investments in Shenzhen Fastprint Circuit are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shenzhen Fastprint sustained solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with Tongyu Communication and Shenzhen Fastprint

The main advantage of trading using opposite Tongyu Communication and Shenzhen Fastprint positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongyu Communication position performs unexpectedly, Shenzhen Fastprint 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 Shenzhen Fastprint will offset losses from the drop in Shenzhen Fastprint's long position.

The idea behind Tongyu Communication and Shenzhen Fastprint Circuit pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.