Correlation Between Cathay DJIA and Capital Ice
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cathay DJIA Inv and Capital Ice 1 5, you can compare the effects of market volatilities on Cathay DJIA and Capital Ice 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 Cathay DJIA with a short position of Capital Ice. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay DJIA and Capital Ice.
Diversification Opportunities for Cathay DJIA and Capital Ice
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cathay and Capital is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding Cathay DJIA Inv and Capital Ice 1 5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital Ice 1 and Cathay DJIA 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 Cathay DJIA Inv are associated (or correlated) with Capital Ice. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Capital Ice 1 has no effect on the direction of Cathay DJIA i.e., Cathay DJIA and Capital Ice go up and down completely randomly.
Pair Corralation between Cathay DJIA and Capital Ice
Assuming the 90 days trading horizon Cathay DJIA Inv is expected to under-perform the Capital Ice. In addition to that, Cathay DJIA is 2.16 times more volatile than Capital Ice 1 5. It trades about -0.31 of its total potential returns per unit of risk. Capital Ice 1 5 is currently generating about 0.24 per unit of volatility. If you would invest 3,858 in Capital Ice 1 5 on September 5, 2024 and sell it today you would earn a total of 77.00 from holding Capital Ice 1 5 or generate 2.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay DJIA Inv vs. Capital Ice 1 5
Performance |
| Timeline |
| Cathay DJIA Inv |
| Capital Ice 1 |
Cathay DJIA and Capital Ice Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay DJIA and Capital Ice
The main advantage of trading using opposite Cathay DJIA and Capital Ice positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay DJIA position performs unexpectedly, Capital Ice 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 Capital Ice will offset losses from the drop in Capital Ice's long position.| Cathay DJIA vs. Ruentex Development Co | Cathay DJIA vs. Symtek Automation Asia | Cathay DJIA vs. CTCI Corp | Cathay DJIA vs. Information Technology Total |
| Capital Ice vs. Capital ICE 15 | Capital Ice vs. Capital ICE International15 | Capital Ice vs. Capital BofA Merrill | Capital Ice vs. Capital Nasdaq Biotechnology |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |