Correlation Between Zhongtong Guomai and CICT Mobile
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By analyzing existing cross correlation between Zhongtong Guomai Communication and CICT Mobile Communication, you can compare the effects of market volatilities on Zhongtong Guomai 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 Zhongtong Guomai with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and CICT Mobile.
Diversification Opportunities for Zhongtong Guomai and CICT Mobile
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and CICT is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication 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 Zhongtong Guomai 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 Zhongtong Guomai Communication 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 Zhongtong Guomai i.e., Zhongtong Guomai and CICT Mobile go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and CICT Mobile
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the CICT Mobile. In addition to that, Zhongtong Guomai is 1.44 times more volatile than CICT Mobile Communication. It trades about -0.24 of its total potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.14 per unit of volatility. If you would invest 710.00 in CICT Mobile Communication on September 12, 2024 and sell it today you would lose (61.00) from holding CICT Mobile Communication or give up 8.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. CICT Mobile Communication
Performance |
| Timeline |
| Zhongtong Guomai Com |
| CICT Mobile Communication |
Zhongtong Guomai and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and CICT Mobile
The main advantage of trading using opposite Zhongtong Guomai and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai 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.| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
| 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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