Correlation Between CICT Mobile and Hefei Metalforming
Specify exactly 2 symbols:
By analyzing existing cross correlation between CICT Mobile Communication and Hefei Metalforming Mach, you can compare the effects of market volatilities on CICT Mobile and Hefei Metalforming 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 Hefei Metalforming. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Hefei Metalforming.
Diversification Opportunities for CICT Mobile and Hefei Metalforming
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Hefei is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Hefei Metalforming Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hefei Metalforming Mach 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 Hefei Metalforming. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hefei Metalforming Mach has no effect on the direction of CICT Mobile i.e., CICT Mobile and Hefei Metalforming go up and down completely randomly.
Pair Corralation between CICT Mobile and Hefei Metalforming
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the Hefei Metalforming. But the stock apears to be less risky and, when comparing its historical volatility, CICT Mobile Communication is 1.64 times less risky than Hefei Metalforming. The stock trades about -0.23 of its potential returns per unit of risk. The Hefei Metalforming Mach is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 709.00 in Hefei Metalforming Mach on October 25, 2024 and sell it today you would lose (3.00) from holding Hefei Metalforming Mach or give up 0.42% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CICT Mobile Communication vs. Hefei Metalforming Mach
Performance |
| Timeline |
| CICT Mobile Communication |
| Hefei Metalforming Mach |
CICT Mobile and Hefei Metalforming Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CICT Mobile and Hefei Metalforming
The main advantage of trading using opposite CICT Mobile and Hefei Metalforming positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Hefei Metalforming 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 Hefei Metalforming will offset losses from the drop in Hefei Metalforming's long position.| CICT Mobile vs. Kweichow Moutai Co | CICT Mobile vs. NAURA Technology Group | CICT Mobile vs. APT Medical | CICT Mobile vs. BYD Co Ltd |
| Hefei Metalforming vs. Jilin Jlu Communication | Hefei Metalforming vs. CICT Mobile Communication | Hefei Metalforming vs. Guangzhou Jointas Chemical | Hefei Metalforming vs. Telling Telecommunication Holding |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |