Correlation Between China International and Lootom Telcovideo
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By analyzing existing cross correlation between China International Capital and Lootom Telcovideo Network, you can compare the effects of market volatilities on China International and Lootom Telcovideo 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 Lootom Telcovideo. Check out your portfolio center. Please also check ongoing floating volatility patterns of China International and Lootom Telcovideo.
Diversification Opportunities for China International and Lootom Telcovideo
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Lootom is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China International Capital and Lootom Telcovideo Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lootom Telcovideo Network 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 Lootom Telcovideo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lootom Telcovideo Network has no effect on the direction of China International i.e., China International and Lootom Telcovideo go up and down completely randomly.
Pair Corralation between China International and Lootom Telcovideo
Assuming the 90 days trading horizon China International is expected to generate 5.79 times less return on investment than Lootom Telcovideo. But when comparing it to its historical volatility, China International Capital is 1.36 times less risky than Lootom Telcovideo. It trades about 0.02 of its potential returns per unit of risk. Lootom Telcovideo Network is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 816.00 in Lootom Telcovideo Network on September 1, 2024 and sell it today you would earn a total of 45.00 from holding Lootom Telcovideo Network or generate 5.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China International Capital vs. Lootom Telcovideo Network
Performance |
| Timeline |
| China International |
| Lootom Telcovideo Network |
China International and Lootom Telcovideo Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China International and Lootom Telcovideo
The main advantage of trading using opposite China International and Lootom Telcovideo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China International position performs unexpectedly, Lootom Telcovideo 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 Lootom Telcovideo will offset losses from the drop in Lootom Telcovideo's long position.| China International vs. Offshore Oil Engineering | China International vs. Guocheng Mining Co | China International vs. Zhengzhou Coal Mining | China International vs. Xiandai Investment Co |
| Lootom Telcovideo vs. Do Fluoride Chemicals Co | Lootom Telcovideo vs. Changchun BCHT Biotechnology | Lootom Telcovideo vs. Guangdong Marubi Biotechnology | Lootom Telcovideo vs. Sichuan Hebang Biotechnology |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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