Correlation Between Tianjin Pengling and CICT Mobile
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By analyzing existing cross correlation between Tianjin Pengling Rubber and CICT Mobile Communication, you can compare the effects of market volatilities on Tianjin Pengling and CICT Mobile 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 Tianjin Pengling with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tianjin Pengling and CICT Mobile.
Diversification Opportunities for Tianjin Pengling and CICT Mobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Tianjin and CICT is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Tianjin Pengling Rubber and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication and Tianjin Pengling 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 Tianjin Pengling Rubber are associated (or correlated) with CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of Tianjin Pengling i.e., Tianjin Pengling and CICT Mobile go up and down completely randomly.
Pair Corralation between Tianjin Pengling and CICT Mobile
Assuming the 90 days trading horizon Tianjin Pengling Rubber is expected to generate 1.3 times more return on investment than CICT Mobile. However, Tianjin Pengling is 1.3 times more volatile than CICT Mobile Communication. It trades about 0.04 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about 0.03 per unit of risk. If you would invest 348.00 in Tianjin Pengling Rubber on September 13, 2024 and sell it today you would earn a total of 184.00 from holding Tianjin Pengling Rubber or generate 52.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tianjin Pengling Rubber vs. CICT Mobile Communication
Performance |
| Timeline |
| Tianjin Pengling Rubber |
| CICT Mobile Communication |
Tianjin Pengling and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tianjin Pengling and CICT Mobile
The main advantage of trading using opposite Tianjin Pengling and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tianjin Pengling position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile's long position.| Tianjin Pengling vs. Chison Medical Technologies | Tianjin Pengling vs. Double Medical Technology | Tianjin Pengling vs. Jinhui Liquor Co | Tianjin Pengling vs. Zhejiang Publishing Media |
| CICT Mobile vs. Industrial and Commercial | CICT Mobile vs. China Construction Bank | CICT Mobile vs. Bank of China | CICT Mobile vs. Agricultural Bank of |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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