Correlation Between Shanghai Yanpu and CICT Mobile
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By analyzing existing cross correlation between Shanghai Yanpu Metal and CICT Mobile Communication, you can compare the effects of market volatilities on Shanghai Yanpu 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 Shanghai Yanpu with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yanpu and CICT Mobile.
Diversification Opportunities for Shanghai Yanpu and CICT Mobile
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shanghai and CICT is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yanpu Metal 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 Shanghai Yanpu 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 Shanghai Yanpu Metal 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 Shanghai Yanpu i.e., Shanghai Yanpu and CICT Mobile go up and down completely randomly.
Pair Corralation between Shanghai Yanpu and CICT Mobile
Assuming the 90 days trading horizon Shanghai Yanpu Metal is expected to generate 1.09 times more return on investment than CICT Mobile. However, Shanghai Yanpu is 1.09 times more volatile than CICT Mobile Communication. It trades about 0.08 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.07 per unit of risk. If you would invest 3,694 in Shanghai Yanpu Metal on August 28, 2024 and sell it today you would earn a total of 173.00 from holding Shanghai Yanpu Metal or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yanpu Metal vs. CICT Mobile Communication
Performance |
| Timeline |
| Shanghai Yanpu Metal |
| CICT Mobile Communication |
Shanghai Yanpu and CICT Mobile Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yanpu and CICT Mobile
The main advantage of trading using opposite Shanghai Yanpu and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yanpu 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.| Shanghai Yanpu vs. Loongson Technology Corp | Shanghai Yanpu vs. Chongqing Road Bridge | Shanghai Yanpu vs. Shenzhen Fortune Trend | Shanghai Yanpu vs. Wuhan Xianglong Power |
| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile vs. Penghua Shenzhen Energy |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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