Correlation Between Cathay Bloomberg and Cathay Sustainability
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By analyzing existing cross correlation between Cathay Bloomberg Barclays and Cathay Sustainability High, you can compare the effects of market volatilities on Cathay Bloomberg and Cathay Sustainability 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 Sustainability. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Bloomberg and Cathay Sustainability.
Diversification Opportunities for Cathay Bloomberg and Cathay Sustainability
-0.56 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Cathay and Cathay is -0.56. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Bloomberg Barclays and Cathay Sustainability High in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Sustainability 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 Sustainability. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Sustainability has no effect on the direction of Cathay Bloomberg i.e., Cathay Bloomberg and Cathay Sustainability go up and down completely randomly.
Pair Corralation between Cathay Bloomberg and Cathay Sustainability
Assuming the 90 days trading horizon Cathay Bloomberg Barclays is expected to generate 1.15 times more return on investment than Cathay Sustainability. However, Cathay Bloomberg is 1.15 times more volatile than Cathay Sustainability High. It trades about 0.32 of its potential returns per unit of risk. Cathay Sustainability High is currently generating about -0.06 per unit of risk. If you would invest 3,166 in Cathay Bloomberg Barclays on September 5, 2024 and sell it today you would earn a total of 163.00 from holding Cathay Bloomberg Barclays or generate 5.15% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Bloomberg Barclays vs. Cathay Sustainability High
Performance |
| Timeline |
| Cathay Bloomberg Barclays |
| Cathay Sustainability |
Cathay Bloomberg and Cathay Sustainability Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Bloomberg and Cathay Sustainability
The main advantage of trading using opposite Cathay Bloomberg and Cathay Sustainability positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Bloomberg position performs unexpectedly, Cathay Sustainability 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 Sustainability will offset losses from the drop in Cathay Sustainability's long position.| Cathay Bloomberg vs. Ruentex Development Co | Cathay Bloomberg vs. Symtek Automation Asia | Cathay Bloomberg vs. CTCI Corp | Cathay Bloomberg vs. Information Technology Total |
| Cathay Sustainability vs. Cathay TIP TAIEX | Cathay Sustainability vs. Cathay Nasdaq AI | Cathay Sustainability vs. Cathay Dow Jones | Cathay Sustainability 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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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