Correlation Between CICT Mobile and Zhejiang Publishing
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By analyzing existing cross correlation between CICT Mobile Communication and Zhejiang Publishing Media, you can compare the effects of market volatilities on CICT Mobile and Zhejiang Publishing 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 Zhejiang Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Zhejiang Publishing.
Diversification Opportunities for CICT Mobile and Zhejiang Publishing
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Zhejiang is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Zhejiang Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Publishing Media 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 Zhejiang Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Publishing Media has no effect on the direction of CICT Mobile i.e., CICT Mobile and Zhejiang Publishing go up and down completely randomly.
Pair Corralation between CICT Mobile and Zhejiang Publishing
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the Zhejiang Publishing. In addition to that, CICT Mobile is 1.12 times more volatile than Zhejiang Publishing Media. It trades about -0.14 of its total potential returns per unit of risk. Zhejiang Publishing Media is currently generating about 0.02 per unit of volatility. If you would invest 835.00 in Zhejiang Publishing Media on September 12, 2024 and sell it today you would earn a total of 4.00 from holding Zhejiang Publishing Media or generate 0.48% 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. Zhejiang Publishing Media
Performance |
| Timeline |
| CICT Mobile Communication |
| Zhejiang Publishing Media |
CICT Mobile and Zhejiang Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Zhejiang Publishing
The main advantage of trading using opposite CICT Mobile and Zhejiang Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Zhejiang Publishing 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 Zhejiang Publishing will offset losses from the drop in Zhejiang Publishing's long position.| CICT Mobile vs. Gansu Jiu Steel | CICT Mobile vs. Shandong Mining Machinery | CICT Mobile vs. Aba Chemicals Corp | CICT Mobile vs. BlueFocus Communication Group |
| Zhejiang Publishing vs. Kweichow Moutai Co | Zhejiang Publishing vs. Shenzhen Mindray Bio Medical | Zhejiang Publishing vs. G bits Network Technology | Zhejiang Publishing vs. Beijing Roborock Technology |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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