Correlation Between Bank of Communications and CICT Mobile
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By analyzing existing cross correlation between Bank of Communications and CICT Mobile Communication, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and CICT Mobile.
Diversification Opportunities for Bank of Communications and CICT Mobile
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Bank and CICT is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and CICT Mobile go up and down completely randomly.
Pair Corralation between Bank of Communications and CICT Mobile
Assuming the 90 days trading horizon Bank of Communications is expected to generate 10.23 times less return on investment than CICT Mobile. But when comparing it to its historical volatility, Bank of Communications is 2.35 times less risky than CICT Mobile. It trades about 0.02 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about 0.07 of returns per unit of risk over similar time horizon. If you would invest 632.00 in CICT Mobile Communication on September 4, 2024 and sell it today you would earn a total of 23.00 from holding CICT Mobile Communication or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. CICT Mobile Communication
Performance |
| Timeline |
| Bank of Communications |
| CICT Mobile Communication |
Bank of Communications and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and CICT Mobile
The main advantage of trading using opposite Bank of Communications and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Ming Yang Smart | Bank of Communications vs. 159681 | Bank of Communications vs. 159005 | Bank of Communications vs. Loctek Ergonomic Technology |
| CICT Mobile vs. Humanwell Healthcare Group | CICT Mobile vs. China National Software | CICT Mobile vs. Hangzhou Coco Healthcare | CICT Mobile vs. Anhui Huaren Health |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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