Correlation Between Cloud Live and Zhongtong Guomai
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By analyzing existing cross correlation between Cloud Live Technology and Zhongtong Guomai Communication, you can compare the effects of market volatilities on Cloud Live and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Zhongtong Guomai.
Diversification Opportunities for Cloud Live and Zhongtong Guomai
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cloud and Zhongtong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of Cloud Live i.e., Cloud Live and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between Cloud Live and Zhongtong Guomai
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Zhongtong Guomai. In addition to that, Cloud Live is 1.28 times more volatile than Zhongtong Guomai Communication. It trades about -0.37 of its total potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.19 per unit of volatility. If you would invest 824.00 in Zhongtong Guomai Communication on October 28, 2024 and sell it today you would lose (120.00) from holding Zhongtong Guomai Communication or give up 14.56% 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. Zhongtong Guomai Communication
Performance |
| Timeline |
| Cloud Live Technology |
| Zhongtong Guomai Com |
Cloud Live and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Zhongtong Guomai
The main advantage of trading using opposite Cloud Live and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| Cloud Live vs. Songz Automobile Air | Cloud Live vs. Sinomach Automobile Co | Cloud Live vs. Sihui Fuji Electronics | Cloud Live vs. LianChuang Electronic Technology |
| Zhongtong Guomai vs. China State Construction | Zhongtong Guomai vs. Poly Real Estate | Zhongtong Guomai vs. China Vanke Co | Zhongtong Guomai vs. China Merchants Shekou |
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 Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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