Correlation Between China International and Offcn Education
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By analyzing existing cross correlation between China International Capital and Offcn Education Technology, you can compare the effects of market volatilities on China International and Offcn Education 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 International with a short position of Offcn Education. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Offcn Education.
Diversification Opportunities for China International and Offcn Education
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Offcn is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Offcn Education Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Offcn Education Tech and China International 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 International Capital are associated (or correlated) with Offcn Education. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Offcn Education Tech has no effect on the direction of China International i.e., China International and Offcn Education go up and down completely randomly.
Pair Corralation between China International and Offcn Education
Assuming the 90 days trading horizon China International Capital is expected to generate 0.6 times more return on investment than Offcn Education. However, China International Capital is 1.67 times less risky than Offcn Education. It trades about -0.01 of its potential returns per unit of risk. Offcn Education Technology is currently generating about -0.02 per unit of risk. If you would invest 3,977 in China International Capital on September 2, 2024 and sell it today you would lose (421.00) from holding China International Capital or give up 10.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Offcn Education Technology
Performance |
| Timeline |
| China International |
| Offcn Education Tech |
China International and Offcn Education Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Offcn Education
The main advantage of trading using opposite China International and Offcn Education positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Offcn Education 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 Offcn Education will offset losses from the drop in Offcn Education's long position.| China International vs. UE Furniture Co | China International vs. CICC Fund Management | China International vs. Hunan Mendale Hometextile | China International vs. China Asset Management |
| Offcn Education vs. Industrial and Commercial | Offcn Education vs. China Construction Bank | Offcn Education vs. Agricultural Bank of | Offcn Education vs. Bank of China |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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