Correlation Between XinJiang GuoTong and CICT Mobile
Specify exactly 2 symbols:
By analyzing existing cross correlation between XinJiang GuoTong Pipeline and CICT Mobile Communication, you can compare the effects of market volatilities on XinJiang GuoTong and CICT Mobile 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 XinJiang GuoTong with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of XinJiang GuoTong and CICT Mobile.
Diversification Opportunities for XinJiang GuoTong and CICT Mobile
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between XinJiang and CICT is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding XinJiang GuoTong Pipeline and CICT Mobile Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CICT Mobile Communication and XinJiang GuoTong 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 XinJiang GuoTong Pipeline are associated (or correlated) with CICT Mobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CICT Mobile Communication has no effect on the direction of XinJiang GuoTong i.e., XinJiang GuoTong and CICT Mobile go up and down completely randomly.
Pair Corralation between XinJiang GuoTong and CICT Mobile
Assuming the 90 days trading horizon XinJiang GuoTong Pipeline is expected to generate 1.0 times more return on investment than CICT Mobile. However, XinJiang GuoTong is 1.0 times more volatile than CICT Mobile Communication. It trades about 0.19 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about 0.15 per unit of risk. If you would invest 661.00 in XinJiang GuoTong Pipeline on September 9, 2024 and sell it today you would earn a total of 278.00 from holding XinJiang GuoTong Pipeline or generate 42.06% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
XinJiang GuoTong Pipeline vs. CICT Mobile Communication
Performance |
Timeline |
XinJiang GuoTong Pipeline |
CICT Mobile Communication |
XinJiang GuoTong and CICT Mobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with XinJiang GuoTong and CICT Mobile
The main advantage of trading using opposite XinJiang GuoTong and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if XinJiang GuoTong position performs unexpectedly, CICT Mobile 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 CICT Mobile will offset losses from the drop in CICT Mobile's long position.The idea behind XinJiang GuoTong Pipeline and CICT Mobile Communication pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
CICT Mobile vs. PetroChina Co Ltd | CICT Mobile vs. China Mobile Limited | CICT Mobile vs. Ping An Insurance | CICT Mobile vs. Kweichow Moutai Co |
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 Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
Content Syndication Quickly integrate customizable finance content to your own investment portal | |
My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |