Correlation Between Cinda Securities and 37 Interactive
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By analyzing existing cross correlation between Cinda Securities Co and 37 Interactive Entertainment, you can compare the effects of market volatilities on Cinda Securities and 37 Interactive 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 Cinda Securities with a short position of 37 Interactive. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and 37 Interactive.
Diversification Opportunities for Cinda Securities and 37 Interactive
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cinda and 002555 is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and 37 Interactive Entertainment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 37 Interactive Enter and Cinda Securities 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 Cinda Securities Co are associated (or correlated) with 37 Interactive. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 37 Interactive Enter has no effect on the direction of Cinda Securities i.e., Cinda Securities and 37 Interactive go up and down completely randomly.
Pair Corralation between Cinda Securities and 37 Interactive
Assuming the 90 days trading horizon Cinda Securities is expected to generate 1.82 times less return on investment than 37 Interactive. In addition to that, Cinda Securities is 1.01 times more volatile than 37 Interactive Entertainment. It trades about 0.04 of its total potential returns per unit of risk. 37 Interactive Entertainment is currently generating about 0.08 per unit of volatility. If you would invest 1,269 in 37 Interactive Entertainment on September 26, 2024 and sell it today you would earn a total of 341.00 from holding 37 Interactive Entertainment or generate 26.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. 37 Interactive Entertainment
Performance |
| Timeline |
| Cinda Securities |
| 37 Interactive Enter |
Cinda Securities and 37 Interactive Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and 37 Interactive
The main advantage of trading using opposite Cinda Securities and 37 Interactive positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, 37 Interactive 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 37 Interactive will offset losses from the drop in 37 Interactive's long position.| Cinda Securities vs. Kweichow Moutai Co | Cinda Securities vs. Contemporary Amperex Technology | Cinda Securities vs. G bits Network Technology | Cinda Securities vs. BYD Co Ltd |
| 37 Interactive vs. State Grid InformationCommunication | 37 Interactive vs. Hainan Airlines Co | 37 Interactive vs. Zoje Resources Investment | 37 Interactive vs. Guangzhou Seagull Kitchen |
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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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