Correlation Between Caitong Securities and Guizhou BroadcastingTV
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By analyzing existing cross correlation between Caitong Securities Co and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on Caitong Securities and Guizhou BroadcastingTV 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 Caitong Securities with a short position of Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of Caitong Securities and Guizhou BroadcastingTV.
Diversification Opportunities for Caitong Securities and Guizhou BroadcastingTV
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Caitong and Guizhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Caitong Securities Co and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV and Caitong Securities 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 Caitong Securities Co are associated (or correlated) with Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of Caitong Securities i.e., Caitong Securities and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between Caitong Securities and Guizhou BroadcastingTV
Assuming the 90 days trading horizon Caitong Securities Co is expected to generate 0.41 times more return on investment than Guizhou BroadcastingTV. However, Caitong Securities Co is 2.42 times less risky than Guizhou BroadcastingTV. It trades about 0.1 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about -0.07 per unit of risk. If you would invest 806.00 in Caitong Securities Co on September 24, 2024 and sell it today you would earn a total of 19.00 from holding Caitong Securities Co or generate 2.36% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Caitong Securities Co vs. Guizhou BroadcastingTV Info
Performance |
Timeline |
Caitong Securities |
Guizhou BroadcastingTV |
Caitong Securities and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Caitong Securities and Guizhou BroadcastingTV
The main advantage of trading using opposite Caitong Securities and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Caitong Securities position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV's long position.Caitong Securities vs. Kweichow Moutai Co | Caitong Securities vs. Contemporary Amperex Technology | Caitong Securities vs. G bits Network Technology | Caitong Securities vs. BYD Co Ltd |
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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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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