Correlation Between Northking Information and CICT Mobile
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By analyzing existing cross correlation between Northking Information Technology and CICT Mobile Communication, you can compare the effects of market volatilities on Northking Information 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 Northking Information with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Northking Information and CICT Mobile.
Diversification Opportunities for Northking Information and CICT Mobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Northking and CICT is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding Northking Information Technolo 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 Northking Information 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 Northking Information Technology 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 Northking Information i.e., Northking Information and CICT Mobile go up and down completely randomly.
Pair Corralation between Northking Information and CICT Mobile
Assuming the 90 days trading horizon Northking Information Technology is expected to generate 1.06 times more return on investment than CICT Mobile. However, Northking Information is 1.06 times more volatile than CICT Mobile Communication. It trades about -0.05 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.12 per unit of risk. If you would invest 1,639 in Northking Information Technology on September 10, 2024 and sell it today you would lose (64.00) from holding Northking Information Technology or give up 3.9% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Northking Information Technolo vs. CICT Mobile Communication
Performance |
Timeline |
Northking Information |
CICT Mobile Communication |
Northking Information and CICT Mobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Northking Information and CICT Mobile
The main advantage of trading using opposite Northking Information and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Northking Information 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.Northking Information vs. Industrial and Commercial | Northking Information vs. China Construction Bank | Northking Information vs. Bank of China | Northking Information vs. Agricultural Bank of |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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