Correlation Between CCB Principal and 562930
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By analyzing existing cross correlation between CCB Principal SSE and 562930, you can compare the effects of market volatilities on CCB Principal and 562930 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 562930. Check out your portfolio center. Please also check ongoing floating volatility patterns of CCB Principal and 562930.
Diversification Opportunities for CCB Principal and 562930
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CCB and 562930 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CCB Principal SSE and 562930 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 562930 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 562930. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 562930 has no effect on the direction of CCB Principal i.e., CCB Principal and 562930 go up and down completely randomly.
Pair Corralation between CCB Principal and 562930
Assuming the 90 days trading horizon CCB Principal is expected to generate 4.01 times less return on investment than 562930. But when comparing it to its historical volatility, CCB Principal SSE is 1.46 times less risky than 562930. It trades about 0.09 of its potential returns per unit of risk. 562930 is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 51.00 in 562930 on August 30, 2024 and sell it today you would earn a total of 32.00 from holding 562930 or generate 62.75% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CCB Principal SSE vs. 562930
Performance |
| Timeline |
| CCB Principal SSE |
| 562930 |
CCB Principal and 562930 Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CCB Principal and 562930
The main advantage of trading using opposite CCB Principal and 562930 positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CCB Principal position performs unexpectedly, 562930 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 562930 will offset losses from the drop in 562930's long position.| CCB Principal vs. CCB Principal SZSE | CCB Principal vs. CCB Principal Asset | CCB Principal vs. CCB Principal MSCI | CCB Principal vs. 159695 |
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 Comparator module to compare the composition, asset allocations and performance of any two portfolios in your account.
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