Correlation Between China National and CICT Mobile
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By analyzing existing cross correlation between China National Software and CICT Mobile Communication, you can compare the effects of market volatilities on China National 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 National with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of China National and CICT Mobile.
Diversification Opportunities for China National and CICT Mobile
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and CICT is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China National Software 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 National 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 National Software 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 National i.e., China National and CICT Mobile go up and down completely randomly.
Pair Corralation between China National and CICT Mobile
Assuming the 90 days trading horizon China National Software is expected to under-perform the CICT Mobile. In addition to that, China National is 1.53 times more volatile than CICT Mobile Communication. It trades about -0.17 of its total potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.14 per unit of volatility. If you would invest 710.00 in CICT Mobile Communication on September 12, 2024 and sell it today you would lose (61.00) from holding CICT Mobile Communication or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China National Software vs. CICT Mobile Communication
Performance |
| Timeline |
| China National Software |
| CICT Mobile Communication |
China National and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China National and CICT Mobile
The main advantage of trading using opposite China National and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China National 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 National vs. Gansu Jiu Steel | China National vs. Shandong Mining Machinery | China National vs. Aba Chemicals Corp | China National vs. BlueFocus Communication Group |
| CICT Mobile vs. Gansu Jiu Steel | CICT Mobile vs. Shandong Mining Machinery | CICT Mobile vs. Aba Chemicals Corp | CICT Mobile vs. BlueFocus Communication Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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