Correlation Between Cloud Live and Anhui Tongguan
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By analyzing existing cross correlation between Cloud Live Technology and Anhui Tongguan Copper, you can compare the effects of market volatilities on Cloud Live and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Anhui Tongguan.
Diversification Opportunities for Cloud Live and Anhui Tongguan
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Cloud and Anhui is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of Cloud Live i.e., Cloud Live and Anhui Tongguan go up and down completely randomly.
Pair Corralation between Cloud Live and Anhui Tongguan
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Anhui Tongguan. In addition to that, Cloud Live is 1.18 times more volatile than Anhui Tongguan Copper. It trades about -0.44 of its total potential returns per unit of risk. Anhui Tongguan Copper is currently generating about 0.1 per unit of volatility. If you would invest 1,000.00 in Anhui Tongguan Copper on November 7, 2024 and sell it today you would earn a total of 46.00 from holding Anhui Tongguan Copper or generate 4.6% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Live Technology vs. Anhui Tongguan Copper
Performance |
| Timeline |
| Cloud Live Technology |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Anhui Tongguan Copper |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
Cloud Live and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Anhui Tongguan
The main advantage of trading using opposite Cloud Live and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.The idea behind Cloud Live Technology and Anhui Tongguan Copper 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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