Correlation Between Cloud Live and Central China
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By analyzing existing cross correlation between Cloud Live Technology and Central China Land, you can compare the effects of market volatilities on Cloud Live and Central China 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 Cloud Live with a short position of Central China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Central China.
Diversification Opportunities for Cloud Live and Central China
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cloud and Central is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Central China Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Central China Land and Cloud Live 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 Cloud Live Technology are associated (or correlated) with Central China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Central China Land has no effect on the direction of Cloud Live i.e., Cloud Live and Central China go up and down completely randomly.
Pair Corralation between Cloud Live and Central China
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Central China. In addition to that, Cloud Live is 1.71 times more volatile than Central China Land. It trades about -0.03 of its total potential returns per unit of risk. Central China Land is currently generating about 0.06 per unit of volatility. If you would invest 1,000.00 in Central China Land on November 3, 2024 and sell it today you would earn a total of 131.00 from holding Central China Land or generate 13.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Live Technology vs. Central China Land
Performance |
| Timeline |
| Cloud Live Technology |
| Central China Land |
Cloud Live and Central China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Central China
The main advantage of trading using opposite Cloud Live and Central China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Central China 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 Central China will offset losses from the drop in Central China's long position.| Cloud Live vs. Air China Ltd | Cloud Live vs. Fibocom Wireless | Cloud Live vs. Jilin Jlu Communication | Cloud Live vs. Shandong Hongchuang Aluminum |
| Central China vs. Xinjiang Communications Construction | Central China vs. Nanjing Putian Telecommunications | Central China vs. CICT Mobile Communication | Central China vs. Allwin Telecommunication 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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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