Correlation Between Cloud Live and Shenzhen Changfang
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By analyzing existing cross correlation between Cloud Live Technology and Shenzhen Changfang Light, you can compare the effects of market volatilities on Cloud Live and Shenzhen Changfang 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 Shenzhen Changfang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Shenzhen Changfang.
Diversification Opportunities for Cloud Live and Shenzhen Changfang
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cloud and Shenzhen is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Shenzhen Changfang Light in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Changfang Light 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 Shenzhen Changfang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Changfang Light has no effect on the direction of Cloud Live i.e., Cloud Live and Shenzhen Changfang go up and down completely randomly.
Pair Corralation between Cloud Live and Shenzhen Changfang
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Shenzhen Changfang. In addition to that, Cloud Live is 1.26 times more volatile than Shenzhen Changfang Light. It trades about -0.51 of its total potential returns per unit of risk. Shenzhen Changfang Light is currently generating about -0.05 per unit of volatility. If you would invest 190.00 in Shenzhen Changfang Light on October 14, 2024 and sell it today you would lose (10.00) from holding Shenzhen Changfang Light or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Live Technology vs. Shenzhen Changfang Light
Performance |
| Timeline |
| Cloud Live Technology |
| Shenzhen Changfang Light |
Cloud Live and Shenzhen Changfang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Shenzhen Changfang
The main advantage of trading using opposite Cloud Live and Shenzhen Changfang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Shenzhen Changfang 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 Changfang will offset losses from the drop in Shenzhen Changfang's long position.| Cloud Live vs. Holitech Technology Co | Cloud Live vs. Zotye Automobile Co | Cloud Live vs. Bus Online Co | Cloud Live vs. Cultural Investment Holdings |
| Shenzhen Changfang vs. Humanwell Healthcare Group | Shenzhen Changfang vs. Lotus Health Group | Shenzhen Changfang vs. Healthcare Co | Shenzhen Changfang vs. Ligao Foods CoLtd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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