Correlation Between 159681 and CCB Principal
Specify exactly 2 symbols:
By analyzing existing cross correlation between 159681 and CCB Principal SSE, you can compare the effects of market volatilities on 159681 and CCB Principal 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 159681 with a short position of CCB Principal. Check out your portfolio center. Please also check ongoing floating volatility patterns of 159681 and CCB Principal.
Diversification Opportunities for 159681 and CCB Principal
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 159681 and CCB is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding 159681 and CCB Principal SSE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CCB Principal SSE and 159681 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 159681 are associated (or correlated) with CCB Principal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CCB Principal SSE has no effect on the direction of 159681 i.e., 159681 and CCB Principal go up and down completely randomly.
Pair Corralation between 159681 and CCB Principal
Assuming the 90 days trading horizon 159681 is expected to generate 2.1 times more return on investment than CCB Principal. However, 159681 is 2.1 times more volatile than CCB Principal SSE. It trades about 0.07 of its potential returns per unit of risk. CCB Principal SSE is currently generating about 0.04 per unit of risk. If you would invest 76.00 in 159681 on August 30, 2024 and sell it today you would earn a total of 19.00 from holding 159681 or generate 25.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
159681 vs. CCB Principal SSE
Performance |
| Timeline |
| 159681 |
| CCB Principal SSE |
159681 and CCB Principal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with 159681 and CCB Principal
The main advantage of trading using opposite 159681 and CCB Principal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 159681 position performs unexpectedly, CCB Principal 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 CCB Principal will offset losses from the drop in CCB Principal's long position.The idea behind 159681 and CCB Principal SSE 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.| CCB Principal vs. Shenzhen MTC Co | CCB Principal vs. Ming Yang Smart | CCB Principal vs. Changzhou Almaden Co | CCB Principal vs. 159681 |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |