Correlation Between Hubei Yingtong and CICT Mobile
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and CICT Mobile Communication, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and CICT Mobile.
Diversification Opportunities for Hubei Yingtong and CICT Mobile
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Hubei and CICT is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati 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 Hubei Yingtong 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 Hubei Yingtong 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 Hubei Yingtong i.e., Hubei Yingtong and CICT Mobile go up and down completely randomly.
Pair Corralation between Hubei Yingtong and CICT Mobile
Assuming the 90 days trading horizon Hubei Yingtong Telecommunication is expected to generate 1.45 times more return on investment than CICT Mobile. However, Hubei Yingtong is 1.45 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 0.03 per unit of risk. If you would invest 1,063 in Hubei Yingtong Telecommunication on September 3, 2024 and sell it today you would earn a total of 131.00 from holding Hubei Yingtong Telecommunication or generate 12.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. CICT Mobile Communication
Performance |
| Timeline |
| Hubei Yingtong Telec |
| CICT Mobile Communication |
Hubei Yingtong and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and CICT Mobile
The main advantage of trading using opposite Hubei Yingtong and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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.| Hubei Yingtong vs. CICT Mobile Communication | Hubei Yingtong vs. Wuhan Yangtze Communication | Hubei Yingtong vs. Ningbo Fangzheng Automobile | Hubei Yingtong vs. Iat Automobile Technology |
| CICT Mobile vs. Agricultural Bank of | CICT Mobile vs. China Construction Bank | CICT Mobile vs. Postal Savings Bank | CICT Mobile vs. Bank of Communications |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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