Correlation Between CICT Mobile and Chengdu Xingrong
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By analyzing existing cross correlation between CICT Mobile Communication and Chengdu Xingrong Investment, you can compare the effects of market volatilities on CICT Mobile and Chengdu Xingrong 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 CICT Mobile with a short position of Chengdu Xingrong. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Chengdu Xingrong.
Diversification Opportunities for CICT Mobile and Chengdu Xingrong
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Chengdu is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Chengdu Xingrong Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chengdu Xingrong Inv and CICT Mobile 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 CICT Mobile Communication are associated (or correlated) with Chengdu Xingrong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chengdu Xingrong Inv has no effect on the direction of CICT Mobile i.e., CICT Mobile and Chengdu Xingrong go up and down completely randomly.
Pair Corralation between CICT Mobile and Chengdu Xingrong
Assuming the 90 days trading horizon CICT Mobile Communication is expected to generate 1.6 times more return on investment than Chengdu Xingrong. However, CICT Mobile is 1.6 times more volatile than Chengdu Xingrong Investment. It trades about 0.07 of its potential returns per unit of risk. Chengdu Xingrong Investment is currently generating about -0.08 per unit of risk. If you would invest 632.00 in CICT Mobile Communication on September 4, 2024 and sell it today you would earn a total of 23.00 from holding CICT Mobile Communication or generate 3.64% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. Chengdu Xingrong Investment
Performance |
| Timeline |
| CICT Mobile Communication |
| Chengdu Xingrong Inv |
CICT Mobile and Chengdu Xingrong Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Chengdu Xingrong
The main advantage of trading using opposite CICT Mobile and Chengdu Xingrong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Chengdu Xingrong 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 Chengdu Xingrong will offset losses from the drop in Chengdu Xingrong's long position.| CICT Mobile vs. Humanwell Healthcare Group | CICT Mobile vs. China National Software | CICT Mobile vs. Hangzhou Coco Healthcare | CICT Mobile vs. Anhui Huaren Health |
| Chengdu Xingrong vs. Wuxi Chemical Equipment | Chengdu Xingrong vs. Guangzhou Haige Communications | Chengdu Xingrong vs. CICT Mobile Communication | Chengdu Xingrong vs. Shenyang Chemical Industry |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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