Correlation Between CICT Mobile and XinJiang GuoTong
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By analyzing existing cross correlation between CICT Mobile Communication and XinJiang GuoTong Pipeline, you can compare the effects of market volatilities on CICT Mobile and XinJiang GuoTong 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 CICT Mobile with a short position of XinJiang GuoTong. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and XinJiang GuoTong.
Diversification Opportunities for CICT Mobile and XinJiang GuoTong
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CICT and XinJiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and XinJiang GuoTong Pipeline in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on XinJiang GuoTong Pipeline and CICT Mobile 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 CICT Mobile Communication are associated (or correlated) with XinJiang GuoTong. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of XinJiang GuoTong Pipeline has no effect on the direction of CICT Mobile i.e., CICT Mobile and XinJiang GuoTong go up and down completely randomly.
Pair Corralation between CICT Mobile and XinJiang GuoTong
Assuming the 90 days trading horizon CICT Mobile is expected to generate 1.45 times less return on investment than XinJiang GuoTong. But when comparing it to its historical volatility, CICT Mobile Communication is 1.01 times less risky than XinJiang GuoTong. It trades about 0.14 of its potential returns per unit of risk. XinJiang GuoTong Pipeline is currently generating about 0.2 of returns per unit of risk over similar time horizon. If you would invest 638.00 in XinJiang GuoTong Pipeline on September 6, 2024 and sell it today you would earn a total of 287.00 from holding XinJiang GuoTong Pipeline or generate 44.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CICT Mobile Communication vs. XinJiang GuoTong Pipeline
Performance |
Timeline |
CICT Mobile Communication |
XinJiang GuoTong Pipeline |
CICT Mobile and XinJiang GuoTong Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CICT Mobile and XinJiang GuoTong
The main advantage of trading using opposite CICT Mobile and XinJiang GuoTong positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, XinJiang GuoTong 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 XinJiang GuoTong will offset losses from the drop in XinJiang GuoTong's long position.CICT Mobile vs. Industrial and Commercial | CICT Mobile vs. Agricultural Bank of | CICT Mobile vs. China Construction Bank | CICT Mobile vs. Bank of China |
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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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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