Correlation Between State Grid and CICT Mobile
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By analyzing existing cross correlation between State Grid InformationCommunication and CICT Mobile Communication, you can compare the effects of market volatilities on State Grid 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 State Grid with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of State Grid and CICT Mobile.
Diversification Opportunities for State Grid and CICT Mobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between State and CICT is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding State Grid InformationCommunic 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 State Grid 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 State Grid InformationCommunication 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 State Grid i.e., State Grid and CICT Mobile go up and down completely randomly.
Pair Corralation between State Grid and CICT Mobile
Assuming the 90 days trading horizon State Grid InformationCommunication is expected to generate 1.33 times more return on investment than CICT Mobile. However, State Grid is 1.33 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 -0.07 per unit of risk. If you would invest 1,935 in State Grid InformationCommunication on August 29, 2024 and sell it today you would earn a total of 109.00 from holding State Grid InformationCommunication or generate 5.63% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
State Grid InformationCommunic vs. CICT Mobile Communication
Performance |
| Timeline |
| State Grid Informati |
| CICT Mobile Communication |
State Grid and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with State Grid and CICT Mobile
The main advantage of trading using opposite State Grid and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if State Grid 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.| State Grid vs. Kweichow Moutai Co | State Grid vs. NAURA Technology Group | State Grid vs. APT Medical | State Grid vs. BYD Co Ltd |
| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile vs. Penghua Shenzhen Energy |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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