Correlation Between Guangdong Shenglu and CICT Mobile
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By analyzing existing cross correlation between Guangdong Shenglu Telecommunication and CICT Mobile Communication, you can compare the effects of market volatilities on Guangdong Shenglu and CICT Mobile 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 Guangdong Shenglu with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Shenglu and CICT Mobile.
Diversification Opportunities for Guangdong Shenglu and CICT Mobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and CICT is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Shenglu Telecommunic and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication and Guangdong Shenglu 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 Guangdong Shenglu Telecommunication are associated (or correlated) with CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of Guangdong Shenglu i.e., Guangdong Shenglu and CICT Mobile go up and down completely randomly.
Pair Corralation between Guangdong Shenglu and CICT Mobile
Assuming the 90 days trading horizon Guangdong Shenglu Telecommunication is expected to generate 1.08 times more return on investment than CICT Mobile. However, Guangdong Shenglu is 1.08 times more volatile than CICT Mobile Communication. It trades about 0.03 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.04 per unit of risk. If you would invest 697.00 in Guangdong Shenglu Telecommunication on August 25, 2024 and sell it today you would earn a total of 5.00 from holding Guangdong Shenglu Telecommunication or generate 0.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Shenglu Telecommunic vs. CICT Mobile Communication
Performance |
| Timeline |
| Guangdong Shenglu |
| CICT Mobile Communication |
Guangdong Shenglu and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Shenglu and CICT Mobile
The main advantage of trading using opposite Guangdong Shenglu and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Shenglu position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile's long position.| Guangdong Shenglu vs. Shenzhen MYS Environmental | Guangdong Shenglu vs. AVIC Fund Management | Guangdong Shenglu vs. Shenzhen Bingchuan Network | Guangdong Shenglu vs. Penghua Shenzhen Energy |
| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile vs. Penghua Shenzhen Energy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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