Correlation Between Dawning Information and CICT Mobile
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By analyzing existing cross correlation between Dawning Information Industry and CICT Mobile Communication, you can compare the effects of market volatilities on Dawning 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 Dawning Information with a short position of CICT Mobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dawning Information and CICT Mobile.
Diversification Opportunities for Dawning Information and CICT Mobile
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Dawning and CICT is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Dawning Information Industry 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 Dawning 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 Dawning Information Industry 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 Dawning Information i.e., Dawning Information and CICT Mobile go up and down completely randomly.
Pair Corralation between Dawning Information and CICT Mobile
Assuming the 90 days trading horizon Dawning Information Industry is expected to generate 1.66 times more return on investment than CICT Mobile. However, Dawning Information is 1.66 times more volatile than CICT Mobile Communication. It trades about -0.01 of its potential returns per unit of risk. CICT Mobile Communication is currently generating about -0.04 per unit of risk. If you would invest 7,944 in Dawning Information Industry on September 9, 2024 and sell it today you would lose (245.00) from holding Dawning Information Industry or give up 3.08% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Dawning Information Industry vs. CICT Mobile Communication
Performance |
Timeline |
Dawning Information |
CICT Mobile Communication |
Dawning Information and CICT Mobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Dawning Information and CICT Mobile
The main advantage of trading using opposite Dawning Information and CICT Mobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dawning 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.Dawning Information vs. Biwin Storage Technology | Dawning Information vs. PetroChina Co Ltd | Dawning Information vs. Industrial and Commercial | Dawning Information vs. China Construction Bank |
CICT Mobile vs. Kweichow Moutai Co | CICT Mobile vs. Beijing Roborock Technology | CICT Mobile vs. G bits Network Technology | CICT Mobile vs. China Mobile Limited |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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