Correlation Between Chongqing Shunbo and CICT Mobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between Chongqing Shunbo Aluminum and CICT Mobile Communication, you can compare the effects of market volatilities on Chongqing Shunbo 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 Chongqing Shunbo with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Shunbo and CICT Mobile.
Diversification Opportunities for Chongqing Shunbo and CICT Mobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chongqing and CICT is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Shunbo Aluminum 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 Chongqing Shunbo 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 Chongqing Shunbo Aluminum 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 Chongqing Shunbo i.e., Chongqing Shunbo and CICT Mobile go up and down completely randomly.
Pair Corralation between Chongqing Shunbo and CICT Mobile
Assuming the 90 days trading horizon Chongqing Shunbo Aluminum is expected to generate 0.79 times more return on investment than CICT Mobile. However, Chongqing Shunbo Aluminum is 1.27 times less risky than CICT Mobile. It trades about 0.15 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 610.00 in Chongqing Shunbo Aluminum on August 25, 2024 and sell it today you would earn a total of 46.00 from holding Chongqing Shunbo Aluminum or generate 7.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chongqing Shunbo Aluminum vs. CICT Mobile Communication
Performance |
| Timeline |
| Chongqing Shunbo Aluminum |
| CICT Mobile Communication |
Chongqing Shunbo and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Shunbo and CICT Mobile
The main advantage of trading using opposite Chongqing Shunbo and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Shunbo 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.| Chongqing Shunbo vs. Zijin Mining Group | Chongqing Shunbo vs. Wanhua Chemical Group | Chongqing Shunbo vs. Shandong Gold Mining | Chongqing Shunbo vs. Inner Mongolia BaoTou |
| CICT Mobile vs. Ming Yang Smart | CICT Mobile vs. 159005 | CICT Mobile vs. Loctek Ergonomic Technology | CICT Mobile vs. Xiamen East Asia |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| CEOs Directory Screen CEOs from public companies around the world | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |