Correlation Between Hangzhou Coco and CICT Mobile
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By analyzing existing cross correlation between Hangzhou Coco Healthcare and CICT Mobile Communication, you can compare the effects of market volatilities on Hangzhou Coco 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 Hangzhou Coco with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hangzhou Coco and CICT Mobile.
Diversification Opportunities for Hangzhou Coco and CICT Mobile
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hangzhou and CICT is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Hangzhou Coco Healthcare 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 Hangzhou Coco 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 Hangzhou Coco Healthcare 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 Hangzhou Coco i.e., Hangzhou Coco and CICT Mobile go up and down completely randomly.
Pair Corralation between Hangzhou Coco and CICT Mobile
Assuming the 90 days trading horizon Hangzhou Coco Healthcare is expected to generate 1.09 times more return on investment than CICT Mobile. However, Hangzhou Coco is 1.09 times more volatile than CICT Mobile Communication. It trades about 0.08 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.14 per unit of risk. If you would invest 942.00 in Hangzhou Coco Healthcare on September 12, 2024 and sell it today you would earn a total of 37.00 from holding Hangzhou Coco Healthcare or generate 3.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hangzhou Coco Healthcare vs. CICT Mobile Communication
Performance |
| Timeline |
| Hangzhou Coco Healthcare |
| CICT Mobile Communication |
Hangzhou Coco and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hangzhou Coco and CICT Mobile
The main advantage of trading using opposite Hangzhou Coco and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hangzhou Coco 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.| Hangzhou Coco vs. China Petroleum Chemical | Hangzhou Coco vs. PetroChina Co Ltd | Hangzhou Coco vs. China State Construction | Hangzhou Coco vs. China Railway Group |
| CICT Mobile vs. Gansu Jiu Steel | CICT Mobile vs. Shandong Mining Machinery | CICT Mobile vs. Aba Chemicals Corp | CICT Mobile vs. BlueFocus Communication Group |
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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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