Correlation Between Caihong Display and China International
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By analyzing existing cross correlation between Caihong Display Devices and China International Travel, you can compare the effects of market volatilities on Caihong Display and China International 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 Caihong Display with a short position of China International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caihong Display and China International.
Diversification Opportunities for Caihong Display and China International
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Caihong and China is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Caihong Display Devices and China International Travel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China International and Caihong Display 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 Caihong Display Devices are associated (or correlated) with China International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China International has no effect on the direction of Caihong Display i.e., Caihong Display and China International go up and down completely randomly.
Pair Corralation between Caihong Display and China International
Assuming the 90 days trading horizon Caihong Display Devices is expected to under-perform the China International. In addition to that, Caihong Display is 1.07 times more volatile than China International Travel. It trades about -0.08 of its total potential returns per unit of risk. China International Travel is currently generating about -0.01 per unit of volatility. If you would invest 7,021 in China International Travel on September 3, 2024 and sell it today you would lose (66.00) from holding China International Travel or give up 0.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Caihong Display Devices vs. China International Travel
Performance |
| Timeline |
| Caihong Display Devices |
| China International |
Caihong Display and China International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Caihong Display and China International
The main advantage of trading using opposite Caihong Display and China International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caihong Display position performs unexpectedly, China International 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 China International will offset losses from the drop in China International's long position.| Caihong Display vs. Agricultural Bank of | Caihong Display vs. China Construction Bank | Caihong Display vs. Postal Savings Bank | Caihong Display vs. Bank of Communications |
| China International vs. PetroChina Co Ltd | China International vs. China Mobile Limited | China International vs. Industrial and Commercial | China International vs. China Life Insurance |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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