Correlation Between Northern United and CICT Mobile
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By analyzing existing cross correlation between Northern United Publishing and CICT Mobile Communication, you can compare the effects of market volatilities on Northern United 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 Northern United with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northern United and CICT Mobile.
Diversification Opportunities for Northern United and CICT Mobile
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Northern and CICT is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Northern United Publishing 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 Northern United 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 Northern United Publishing 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 Northern United i.e., Northern United and CICT Mobile go up and down completely randomly.
Pair Corralation between Northern United and CICT Mobile
Assuming the 90 days trading horizon Northern United Publishing is expected to generate 1.09 times more return on investment than CICT Mobile. However, Northern United is 1.09 times more volatile than CICT Mobile Communication. It trades about 0.11 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.14 per unit of risk. If you would invest 688.00 in Northern United Publishing on September 12, 2024 and sell it today you would earn a total of 42.00 from holding Northern United Publishing or generate 6.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Northern United Publishing vs. CICT Mobile Communication
Performance |
| Timeline |
| Northern United Publ |
| CICT Mobile Communication |
Northern United and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Northern United and CICT Mobile
The main advantage of trading using opposite Northern United and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northern United 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.| Northern United vs. Kweichow Moutai Co | Northern United vs. Shenzhen Mindray Bio Medical | Northern United vs. G bits Network Technology | Northern United vs. Beijing Roborock Technology |
| CICT Mobile vs. Gansu Jiu Steel | CICT Mobile vs. Shandong Mining Machinery | CICT Mobile vs. Aba Chemicals Corp | CICT Mobile vs. BlueFocus Communication Group |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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