Correlation Between Cathay Bloomberg and Cathay SP
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By analyzing existing cross correlation between Cathay Bloomberg Barclays and Cathay SP North, you can compare the effects of market volatilities on Cathay Bloomberg and Cathay SP 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 Bloomberg with a short position of Cathay SP. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Bloomberg and Cathay SP.
Diversification Opportunities for Cathay Bloomberg and Cathay SP
0.02 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Cathay and Cathay is 0.02. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Bloomberg Barclays and Cathay SP North in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay SP North and Cathay Bloomberg 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 Bloomberg Barclays are associated (or correlated) with Cathay SP. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay SP North has no effect on the direction of Cathay Bloomberg i.e., Cathay Bloomberg and Cathay SP go up and down completely randomly.
Pair Corralation between Cathay Bloomberg and Cathay SP
Assuming the 90 days trading horizon Cathay Bloomberg is expected to generate 14.53 times less return on investment than Cathay SP. But when comparing it to its historical volatility, Cathay Bloomberg Barclays is 1.9 times less risky than Cathay SP. It trades about 0.01 of its potential returns per unit of risk. Cathay SP North is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,615 in Cathay SP North on October 22, 2024 and sell it today you would earn a total of 2,209 from holding Cathay SP North or generate 84.47% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Bloomberg Barclays vs. Cathay SP North
Performance |
| Timeline |
| Cathay Bloomberg Barclays |
| Cathay SP North |
Cathay Bloomberg and Cathay SP Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Bloomberg and Cathay SP
The main advantage of trading using opposite Cathay Bloomberg and Cathay SP positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Bloomberg position performs unexpectedly, Cathay SP 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 Cathay SP will offset losses from the drop in Cathay SP's long position.| Cathay Bloomberg vs. Cathay TIP TAIEX | Cathay Bloomberg vs. Cathay Nasdaq AI | Cathay Bloomberg vs. Cathay Dow Jones | Cathay Bloomberg vs. Cathay TAIEX Daily |
| Cathay SP vs. Cathay TIP TAIEX | Cathay SP vs. Cathay Nasdaq AI | Cathay SP vs. Cathay Dow Jones | Cathay SP vs. Cathay Bloomberg Barclays |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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