Correlation Between China Sports and CICT Mobile
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By analyzing existing cross correlation between China Sports Industry and CICT Mobile Communication, you can compare the effects of market volatilities on China Sports 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 China Sports with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Sports and CICT Mobile.
Diversification Opportunities for China Sports and CICT Mobile
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and CICT is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Sports Industry 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 China Sports 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 China Sports Industry 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 China Sports i.e., China Sports and CICT Mobile go up and down completely randomly.
Pair Corralation between China Sports and CICT Mobile
Assuming the 90 days trading horizon China Sports Industry is expected to under-perform the CICT Mobile. But the stock apears to be less risky and, when comparing its historical volatility, China Sports Industry is 1.24 times less risky than CICT Mobile. The stock trades about 0.0 of its potential returns per unit of risk. The CICT Mobile Communication is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 516.00 in CICT Mobile Communication on September 5, 2024 and sell it today you would earn a total of 132.00 from holding CICT Mobile Communication or generate 25.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Sports Industry vs. CICT Mobile Communication
Performance |
| Timeline |
| China Sports Industry |
| CICT Mobile Communication |
China Sports and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Sports and CICT Mobile
The main advantage of trading using opposite China Sports and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Sports 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.| China Sports vs. Huaibei Mining Holdings | China Sports vs. Zijin Mining Group | China Sports vs. Datang HuaYin Electric | China Sports vs. State Grid InformationCommunication |
| CICT Mobile vs. Tianjin Silvery Dragon | CICT Mobile vs. Dymatic Chemicals | CICT Mobile vs. Yangmei Chemical Co | CICT Mobile vs. China Sports Industry |
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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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