Correlation Between Cloud Live and Guangdong Cellwise
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By analyzing existing cross correlation between Cloud Live Technology and Guangdong Cellwise Microelectronics, you can compare the effects of market volatilities on Cloud Live and Guangdong Cellwise 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 Guangdong Cellwise. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cloud Live and Guangdong Cellwise.
Diversification Opportunities for Cloud Live and Guangdong Cellwise
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Cloud and Guangdong is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Cloud Live Technology and Guangdong Cellwise Microelectr in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Cellwise 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 Guangdong Cellwise. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Cellwise has no effect on the direction of Cloud Live i.e., Cloud Live and Guangdong Cellwise go up and down completely randomly.
Pair Corralation between Cloud Live and Guangdong Cellwise
Assuming the 90 days trading horizon Cloud Live Technology is expected to under-perform the Guangdong Cellwise. In addition to that, Cloud Live is 1.31 times more volatile than Guangdong Cellwise Microelectronics. It trades about -0.51 of its total potential returns per unit of risk. Guangdong Cellwise Microelectronics is currently generating about -0.2 per unit of volatility. If you would invest 5,308 in Guangdong Cellwise Microelectronics on October 14, 2024 and sell it today you would lose (787.00) from holding Guangdong Cellwise Microelectronics or give up 14.83% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cloud Live Technology vs. Guangdong Cellwise Microelectr
Performance |
| Timeline |
| Cloud Live Technology |
| Guangdong Cellwise |
Cloud Live and Guangdong Cellwise Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cloud Live and Guangdong Cellwise
The main advantage of trading using opposite Cloud Live and Guangdong Cellwise positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cloud Live position performs unexpectedly, Guangdong Cellwise 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 Guangdong Cellwise will offset losses from the drop in Guangdong Cellwise'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 |
| Guangdong Cellwise vs. Cloud Live Technology | Guangdong Cellwise vs. Nanjing Putian Telecommunications | Guangdong Cellwise vs. Tianjin Realty Development | Guangdong Cellwise vs. Shenzhen Coship Electronics |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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