Correlation Between Cinda Securities and Longmaster Information
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By analyzing existing cross correlation between Cinda Securities Co and Longmaster Information Tech, you can compare the effects of market volatilities on Cinda Securities and Longmaster Information 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 Longmaster Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cinda Securities and Longmaster Information.
Diversification Opportunities for Cinda Securities and Longmaster Information
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Cinda and Longmaster is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Cinda Securities Co and Longmaster Information Tech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Longmaster Information 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 Longmaster Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Longmaster Information has no effect on the direction of Cinda Securities i.e., Cinda Securities and Longmaster Information go up and down completely randomly.
Pair Corralation between Cinda Securities and Longmaster Information
Assuming the 90 days trading horizon Cinda Securities is expected to generate 132.18 times less return on investment than Longmaster Information. But when comparing it to its historical volatility, Cinda Securities Co is 1.43 times less risky than Longmaster Information. It trades about 0.0 of its potential returns per unit of risk. Longmaster Information Tech is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,169 in Longmaster Information Tech on November 5, 2024 and sell it today you would earn a total of 224.00 from holding Longmaster Information Tech or generate 19.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cinda Securities Co vs. Longmaster Information Tech
Performance |
| Timeline |
| Cinda Securities |
| Longmaster Information |
Cinda Securities and Longmaster Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cinda Securities and Longmaster Information
The main advantage of trading using opposite Cinda Securities and Longmaster Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cinda Securities position performs unexpectedly, Longmaster Information 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 Longmaster Information will offset losses from the drop in Longmaster Information's long position.| Cinda Securities vs. Senci Electric Machinery | Cinda Securities vs. Guangzhou KDT Machinery | Cinda Securities vs. Hangzhou Minsheng Healthcare | Cinda Securities vs. Shantui Construction Machinery |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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