Correlation Between Cathay Sustainability and Capital ICE
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By analyzing existing cross correlation between Cathay Sustainability High and Capital ICE International15, you can compare the effects of market volatilities on Cathay Sustainability 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 Sustainability with a short position of Capital ICE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Sustainability and Capital ICE.
Diversification Opportunities for Cathay Sustainability and Capital ICE
-0.49 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Cathay and Capital is -0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cathay Sustainability High and Capital ICE International15 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Capital ICE Internat and Cathay Sustainability 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 Sustainability High 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 Internat has no effect on the direction of Cathay Sustainability i.e., Cathay Sustainability and Capital ICE go up and down completely randomly.
Pair Corralation between Cathay Sustainability and Capital ICE
Assuming the 90 days trading horizon Cathay Sustainability High is expected to generate 2.29 times more return on investment than Capital ICE. However, Cathay Sustainability is 2.29 times more volatile than Capital ICE International15. It trades about 0.07 of its potential returns per unit of risk. Capital ICE International15 is currently generating about 0.07 per unit of risk. If you would invest 1,887 in Cathay Sustainability High on September 5, 2024 and sell it today you would earn a total of 323.00 from holding Cathay Sustainability High or generate 17.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cathay Sustainability High vs. Capital ICE International15
Performance |
| Timeline |
| Cathay Sustainability |
| Capital ICE Internat |
Cathay Sustainability and Capital ICE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Sustainability and Capital ICE
The main advantage of trading using opposite Cathay Sustainability and Capital ICE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Sustainability 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 Sustainability vs. Cathay TIP TAIEX | Cathay Sustainability vs. Cathay Nasdaq AI | Cathay Sustainability vs. Cathay Dow Jones | Cathay Sustainability vs. Cathay Bloomberg Barclays |
| Capital ICE vs. Ruentex Development Co | Capital ICE vs. Symtek Automation Asia | Capital ICE vs. CTCI Corp | Capital ICE vs. Information Technology Total |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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