Correlation Between CIM FINANCIAL and LOTTOTECH
Can any of the company-specific risk be diversified away by investing in both CIM FINANCIAL and LOTTOTECH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CIM FINANCIAL and LOTTOTECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIM FINANCIAL SERVICES and LOTTOTECH LTD, you can compare the effects of market volatilities on CIM FINANCIAL and LOTTOTECH 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 CIM FINANCIAL with a short position of LOTTOTECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIM FINANCIAL and LOTTOTECH.
Diversification Opportunities for CIM FINANCIAL and LOTTOTECH
-0.1 | Correlation Coefficient |
Good diversification
The 3 months correlation between CIM and LOTTOTECH is -0.1. Overlapping area represents the amount of risk that can be diversified away by holding CIM FINANCIAL SERVICES and LOTTOTECH LTD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LOTTOTECH LTD and CIM FINANCIAL 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 CIM FINANCIAL SERVICES are associated (or correlated) with LOTTOTECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LOTTOTECH LTD has no effect on the direction of CIM FINANCIAL i.e., CIM FINANCIAL and LOTTOTECH go up and down completely randomly.
Pair Corralation between CIM FINANCIAL and LOTTOTECH
Assuming the 90 days trading horizon CIM FINANCIAL SERVICES is expected to generate 0.9 times more return on investment than LOTTOTECH. However, CIM FINANCIAL SERVICES is 1.12 times less risky than LOTTOTECH. It trades about 0.06 of its potential returns per unit of risk. LOTTOTECH LTD is currently generating about -0.02 per unit of risk. If you would invest 1,345 in CIM FINANCIAL SERVICES on October 24, 2024 and sell it today you would earn a total of 55.00 from holding CIM FINANCIAL SERVICES or generate 4.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIM FINANCIAL SERVICES vs. LOTTOTECH LTD
Performance |
| Timeline |
| CIM FINANCIAL SERVICES |
| LOTTOTECH LTD |
CIM FINANCIAL and LOTTOTECH Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIM FINANCIAL and LOTTOTECH
The main advantage of trading using opposite CIM FINANCIAL and LOTTOTECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIM FINANCIAL position performs unexpectedly, LOTTOTECH 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 LOTTOTECH will offset losses from the drop in LOTTOTECH's long position.| CIM FINANCIAL vs. CAVELL TOURISTIC INVESTMENTS | CIM FINANCIAL vs. PLASTIC INDUSTRY LTD | CIM FINANCIAL vs. PHOENIX INVESTMENT PANY | CIM FINANCIAL vs. QUALITY BEVERAGES LTD |
| LOTTOTECH vs. CIM FINANCIAL SERVICES | LOTTOTECH vs. PLASTIC INDUSTRY LTD | LOTTOTECH vs. CAVELL TOURISTIC INVESTMENTS | LOTTOTECH vs. AGAPE GLOBAL INVESTMENTS |
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 Portfolio Center module to all portfolio management and optimization tools to improve performance of your portfolios.
Other Complementary Tools
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine |