Correlation Between Wuhan Yangtze and CICT Mobile
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By analyzing existing cross correlation between Wuhan Yangtze Communication and CICT Mobile Communication, you can compare the effects of market volatilities on Wuhan Yangtze 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 Wuhan Yangtze with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and CICT Mobile.
Diversification Opportunities for Wuhan Yangtze and CICT Mobile
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wuhan and CICT is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication 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 Wuhan Yangtze 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 Wuhan Yangtze Communication 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 Wuhan Yangtze i.e., Wuhan Yangtze and CICT Mobile go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and CICT Mobile
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to generate 2.17 times more return on investment than CICT Mobile. However, Wuhan Yangtze is 2.17 times more volatile than CICT Mobile Communication. It trades about 0.23 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 1,963 in Wuhan Yangtze Communication on August 28, 2024 and sell it today you would earn a total of 622.00 from holding Wuhan Yangtze Communication or generate 31.69% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. CICT Mobile Communication
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| CICT Mobile Communication |
Wuhan Yangtze and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and CICT Mobile
The main advantage of trading using opposite Wuhan Yangtze and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze 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.| Wuhan Yangtze vs. Yankershop Food Co | Wuhan Yangtze vs. Youyou Foods Co | Wuhan Yangtze vs. Great Sun Foods Co | Wuhan Yangtze vs. Harbin Air Conditioning |
| 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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