Correlation Between CICT Mobile and Fuyao Glass
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By analyzing existing cross correlation between CICT Mobile Communication and Fuyao Glass Industry, you can compare the effects of market volatilities on CICT Mobile and Fuyao Glass 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 Fuyao Glass. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Fuyao Glass.
Diversification Opportunities for CICT Mobile and Fuyao Glass
0.7 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Fuyao is 0.7. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Fuyao Glass Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fuyao Glass Industry 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 Fuyao Glass. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fuyao Glass Industry has no effect on the direction of CICT Mobile i.e., CICT Mobile and Fuyao Glass go up and down completely randomly.
Pair Corralation between CICT Mobile and Fuyao Glass
Assuming the 90 days trading horizon CICT Mobile Communication is expected to generate 1.8 times more return on investment than Fuyao Glass. However, CICT Mobile is 1.8 times more volatile than Fuyao Glass Industry. It trades about 0.12 of its potential returns per unit of risk. Fuyao Glass Industry is currently generating about 0.17 per unit of risk. If you would invest 508.00 in CICT Mobile Communication on August 31, 2024 and sell it today you would earn a total of 108.00 from holding CICT Mobile Communication or generate 21.26% 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. Fuyao Glass Industry
Performance |
| Timeline |
| CICT Mobile Communication |
| Fuyao Glass Industry |
CICT Mobile and Fuyao Glass Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Fuyao Glass
The main advantage of trading using opposite CICT Mobile and Fuyao Glass positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Fuyao Glass 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 Fuyao Glass will offset losses from the drop in Fuyao Glass' long position.| CICT Mobile vs. Kweichow Moutai Co | CICT Mobile vs. NAURA Technology Group | CICT Mobile vs. APT Medical | CICT Mobile vs. Contemporary Amperex Technology |
| Fuyao Glass vs. Changchun BCHT Biotechnology | Fuyao Glass vs. Chenzhou Jingui Silver | Fuyao Glass vs. Shenzhen Bioeasy Biotechnology | Fuyao Glass vs. Tianjin Silvery Dragon |
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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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