Correlation Between CICT Mobile and Anhui Tongguan
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By analyzing existing cross correlation between CICT Mobile Communication and Anhui Tongguan Copper, you can compare the effects of market volatilities on CICT Mobile and Anhui Tongguan 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 Anhui Tongguan. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Anhui Tongguan.
Diversification Opportunities for CICT Mobile and Anhui Tongguan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CICT and Anhui is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Anhui Tongguan Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Tongguan Copper 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 Anhui Tongguan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Tongguan Copper has no effect on the direction of CICT Mobile i.e., CICT Mobile and Anhui Tongguan go up and down completely randomly.
Pair Corralation between CICT Mobile and Anhui Tongguan
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the Anhui Tongguan. But the stock apears to be less risky and, when comparing its historical volatility, CICT Mobile Communication is 1.02 times less risky than Anhui Tongguan. The stock trades about -0.07 of its potential returns per unit of risk. The Anhui Tongguan Copper is currently generating about -0.01 of returns per unit of risk over similar time horizon. If you would invest 1,111 in Anhui Tongguan Copper on August 28, 2024 and sell it today you would lose (18.00) from holding Anhui Tongguan Copper or give up 1.62% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. Anhui Tongguan Copper
Performance |
| Timeline |
| CICT Mobile Communication |
| Anhui Tongguan Copper |
CICT Mobile and Anhui Tongguan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Anhui Tongguan
The main advantage of trading using opposite CICT Mobile and Anhui Tongguan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Anhui Tongguan 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 Anhui Tongguan will offset losses from the drop in Anhui Tongguan's long position.| CICT Mobile vs. Shenzhen MYS Environmental | CICT Mobile vs. AVIC Fund Management | CICT Mobile vs. Shenzhen Bingchuan Network | CICT Mobile vs. Penghua Shenzhen Energy |
| Anhui Tongguan vs. Lutian Machinery Co | Anhui Tongguan vs. China Longyuan Power | Anhui Tongguan vs. Changshu Tongrun Auto | Anhui Tongguan vs. PetroChina Co Ltd |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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