Correlation Between Circuit Fabology and China State
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By analyzing existing cross correlation between Circuit Fabology Microelectronics and China State Construction, you can compare the effects of market volatilities on Circuit Fabology and China State 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 Circuit Fabology with a short position of China State. Check out your portfolio center. Please also check ongoing floating volatility patterns of Circuit Fabology and China State.
Diversification Opportunities for Circuit Fabology and China State
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Circuit and China is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Circuit Fabology Microelectron and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction and Circuit Fabology 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 Circuit Fabology Microelectronics are associated (or correlated) with China State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of Circuit Fabology i.e., Circuit Fabology and China State go up and down completely randomly.
Pair Corralation between Circuit Fabology and China State
Assuming the 90 days trading horizon Circuit Fabology Microelectronics is expected to under-perform the China State. In addition to that, Circuit Fabology is 1.74 times more volatile than China State Construction. It trades about -0.01 of its total potential returns per unit of risk. China State Construction is currently generating about -0.01 per unit of volatility. If you would invest 602.00 in China State Construction on September 1, 2024 and sell it today you would lose (4.00) from holding China State Construction or give up 0.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Circuit Fabology Microelectron vs. China State Construction
Performance |
| Timeline |
| Circuit Fabology Mic |
| China State Construction |
Circuit Fabology and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Circuit Fabology and China State
The main advantage of trading using opposite Circuit Fabology and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Circuit Fabology position performs unexpectedly, China State 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 China State will offset losses from the drop in China State's long position.| Circuit Fabology vs. Northern United Publishing | Circuit Fabology vs. Qingdao Choho Industrial | Circuit Fabology vs. Minmetals Capital Co | Circuit Fabology vs. Pengxin International Mining |
| China State vs. Hunan Investment Group | China State vs. Huaibei Mining Holdings | China State vs. Metro Investment Development | China State vs. Postal Savings Bank |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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