Correlation Between CICT Mobile and Zhonghang Electronic
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By analyzing existing cross correlation between CICT Mobile Communication and Zhonghang Electronic Measuring, you can compare the effects of market volatilities on CICT Mobile and Zhonghang Electronic 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 Zhonghang Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Zhonghang Electronic.
Diversification Opportunities for CICT Mobile and Zhonghang Electronic
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CICT and Zhonghang is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Zhonghang Electronic Measuring in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhonghang Electronic 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 Zhonghang Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhonghang Electronic has no effect on the direction of CICT Mobile i.e., CICT Mobile and Zhonghang Electronic go up and down completely randomly.
Pair Corralation between CICT Mobile and Zhonghang Electronic
Assuming the 90 days trading horizon CICT Mobile is expected to generate 2.48 times less return on investment than Zhonghang Electronic. But when comparing it to its historical volatility, CICT Mobile Communication is 1.26 times less risky than Zhonghang Electronic. It trades about 0.02 of its potential returns per unit of risk. Zhonghang Electronic Measuring is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 5,177 in Zhonghang Electronic Measuring on November 5, 2024 and sell it today you would earn a total of 1,423 from holding Zhonghang Electronic Measuring or generate 27.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. Zhonghang Electronic Measuring
Performance |
| Timeline |
| CICT Mobile Communication |
| Zhonghang Electronic |
CICT Mobile and Zhonghang Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Zhonghang Electronic
The main advantage of trading using opposite CICT Mobile and Zhonghang Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Zhonghang Electronic 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 Zhonghang Electronic will offset losses from the drop in Zhonghang Electronic's long position.| CICT Mobile vs. Ningbo Fangzheng Automobile | CICT Mobile vs. China Mobile Limited | CICT Mobile vs. Beijing Bewinner Communications | CICT Mobile vs. Sinocat Environmental Technology |
| Zhonghang Electronic vs. Jinling Hotel Corp | Zhonghang Electronic vs. Cultural Investment Holdings | Zhonghang Electronic vs. Luyin Investment Group | Zhonghang Electronic vs. Hangzhou Pinming Software |
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 Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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