Correlation Between CCB Principal and 516180
Specify exactly 2 symbols:
By analyzing existing cross correlation between CCB Principal SSE and 516180, you can compare the effects of market volatilities on CCB Principal and 516180 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 CCB Principal with a short position of 516180. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCB Principal and 516180.
Diversification Opportunities for CCB Principal and 516180
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CCB and 516180 is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CCB Principal SSE and 516180 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 516180 and CCB Principal 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 CCB Principal SSE are associated (or correlated) with 516180. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 516180 has no effect on the direction of CCB Principal i.e., CCB Principal and 516180 go up and down completely randomly.
Pair Corralation between CCB Principal and 516180
Assuming the 90 days trading horizon CCB Principal is expected to generate 1.01 times less return on investment than 516180. But when comparing it to its historical volatility, CCB Principal SSE is 1.5 times less risky than 516180. It trades about 0.04 of its potential returns per unit of risk. 516180 is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 66.00 in 516180 on September 3, 2024 and sell it today you would earn a total of 3.00 from holding 516180 or generate 4.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCB Principal SSE vs. 516180
Performance |
| Timeline |
| CCB Principal SSE |
| 516180 |
CCB Principal and 516180 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCB Principal and 516180
The main advantage of trading using opposite CCB Principal and 516180 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCB Principal position performs unexpectedly, 516180 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 516180 will offset losses from the drop in 516180's long position.| 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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies |