Correlation Between Anhui Huaren and CICT Mobile
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By analyzing existing cross correlation between Anhui Huaren Health and CICT Mobile Communication, you can compare the effects of market volatilities on Anhui Huaren 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 Anhui Huaren with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Huaren and CICT Mobile.
Diversification Opportunities for Anhui Huaren and CICT Mobile
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Anhui and CICT is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Huaren Health 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 Anhui Huaren 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 Anhui Huaren Health 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 Anhui Huaren i.e., Anhui Huaren and CICT Mobile go up and down completely randomly.
Pair Corralation between Anhui Huaren and CICT Mobile
Assuming the 90 days trading horizon Anhui Huaren is expected to generate 1.39 times less return on investment than CICT Mobile. In addition to that, Anhui Huaren is 1.19 times more volatile than CICT Mobile Communication. It trades about 0.08 of its total potential returns per unit of risk. CICT Mobile Communication is currently generating about 0.14 per unit of volatility. If you would invest 514.00 in CICT Mobile Communication on September 4, 2024 and sell it today you would earn a total of 141.00 from holding CICT Mobile Communication or generate 27.43% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Anhui Huaren Health vs. CICT Mobile Communication
Performance |
| Timeline |
| Anhui Huaren Health |
| CICT Mobile Communication |
Anhui Huaren and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Anhui Huaren and CICT Mobile
The main advantage of trading using opposite Anhui Huaren and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Huaren 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.| Anhui Huaren vs. Sportsoul Co Ltd | Anhui Huaren vs. Rising Nonferrous Metals | Anhui Huaren vs. China Life Insurance | Anhui Huaren vs. Shanghai Metersbonwe FashionAccessories |
| CICT Mobile vs. Humanwell Healthcare Group | CICT Mobile vs. China National Software | CICT Mobile vs. Hangzhou Coco Healthcare | CICT Mobile vs. Anhui Huaren Health |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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