Correlation Between Cathay Sustainability and Cathay Bloomberg
Specify exactly 2 symbols:
By analyzing existing cross correlation between Cathay Sustainability High and Cathay Bloomberg Barclays, you can compare the effects of market volatilities on Cathay Sustainability and Cathay Bloomberg 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 Cathay Bloomberg. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cathay Sustainability and Cathay Bloomberg.
Diversification Opportunities for Cathay Sustainability and Cathay Bloomberg
-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 Sustainability High and Cathay Bloomberg Barclays in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cathay Bloomberg Barclays 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 Cathay Bloomberg. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cathay Bloomberg Barclays has no effect on the direction of Cathay Sustainability i.e., Cathay Sustainability and Cathay Bloomberg go up and down completely randomly.
Pair Corralation between Cathay Sustainability and Cathay Bloomberg
Assuming the 90 days trading horizon Cathay Sustainability High is expected to under-perform the Cathay Bloomberg. In addition to that, Cathay Sustainability is 1.34 times more volatile than Cathay Bloomberg Barclays. It trades about -0.09 of its total potential returns per unit of risk. Cathay Bloomberg Barclays is currently generating about 0.08 per unit of volatility. If you would invest 3,193 in Cathay Bloomberg Barclays on August 28, 2024 and sell it today you would earn a total of 35.00 from holding Cathay Bloomberg Barclays or generate 1.1% 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. Cathay Bloomberg Barclays
Performance |
| Timeline |
| Cathay Sustainability |
| Cathay Bloomberg Barclays |
Cathay Sustainability and Cathay Bloomberg Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cathay Sustainability and Cathay Bloomberg
The main advantage of trading using opposite Cathay Sustainability and Cathay Bloomberg positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cathay Sustainability position performs unexpectedly, Cathay Bloomberg 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 Bloomberg will offset losses from the drop in Cathay Bloomberg's long position.The idea behind Cathay Sustainability High and Cathay Bloomberg Barclays pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
Other Complementary Tools
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |