Correlation Between CICT Mobile and Tongyu Communication
Specify exactly 2 symbols:
By analyzing existing cross correlation between CICT Mobile Communication and Tongyu Communication, you can compare the effects of market volatilities on CICT Mobile and Tongyu Communication 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 Tongyu Communication. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Tongyu Communication.
Diversification Opportunities for CICT Mobile and Tongyu Communication
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Tongyu is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Tongyu Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tongyu Communication 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 Tongyu Communication. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tongyu Communication has no effect on the direction of CICT Mobile i.e., CICT Mobile and Tongyu Communication go up and down completely randomly.
Pair Corralation between CICT Mobile and Tongyu Communication
Assuming the 90 days trading horizon CICT Mobile is expected to generate 1.59 times less return on investment than Tongyu Communication. But when comparing it to its historical volatility, CICT Mobile Communication is 1.2 times less risky than Tongyu Communication. It trades about 0.15 of its potential returns per unit of risk. Tongyu Communication is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 1,086 in Tongyu Communication on September 10, 2024 and sell it today you would earn a total of 551.00 from holding Tongyu Communication or generate 50.74% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CICT Mobile Communication vs. Tongyu Communication
Performance |
Timeline |
CICT Mobile Communication |
Tongyu Communication |
CICT Mobile and Tongyu Communication Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CICT Mobile and Tongyu Communication
The main advantage of trading using opposite CICT Mobile and Tongyu Communication positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Tongyu Communication 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 Tongyu Communication will offset losses from the drop in Tongyu Communication's long position.CICT Mobile vs. PetroChina Co Ltd | CICT Mobile vs. China Mobile Limited | CICT Mobile vs. Ping An Insurance | CICT Mobile vs. Kweichow Moutai Co |
Tongyu Communication vs. Industrial and Commercial | Tongyu Communication vs. China Construction Bank | Tongyu Communication vs. Bank of China | Tongyu Communication vs. Agricultural Bank of |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio |