Correlation Between CICT Mobile and Northking Information
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By analyzing existing cross correlation between CICT Mobile Communication and Northking Information Technology, you can compare the effects of market volatilities on CICT Mobile and Northking Information 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 Northking Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Northking Information.
Diversification Opportunities for CICT Mobile and Northking Information
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CICT and Northking is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Northking Information Technolo in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Northking Information 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 Northking Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Northking Information has no effect on the direction of CICT Mobile i.e., CICT Mobile and Northking Information go up and down completely randomly.
Pair Corralation between CICT Mobile and Northking Information
Assuming the 90 days trading horizon CICT Mobile is expected to generate 1.55 times less return on investment than Northking Information. But when comparing it to its historical volatility, CICT Mobile Communication is 1.22 times less risky than Northking Information. It trades about 0.14 of its potential returns per unit of risk. Northking Information Technology is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 1,055 in Northking Information Technology on September 6, 2024 and sell it today you would earn a total of 495.00 from holding Northking Information Technology or generate 46.92% 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. Northking Information Technolo
Performance |
Timeline |
CICT Mobile Communication |
Northking Information |
CICT Mobile and Northking Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CICT Mobile and Northking Information
The main advantage of trading using opposite CICT Mobile and Northking Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Northking Information 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 Northking Information will offset losses from the drop in Northking Information's long position.CICT Mobile vs. Jiangsu Xinri E Vehicle | CICT Mobile vs. Henan Shuanghui Investment | CICT Mobile vs. Shaanxi Energy Investment | CICT Mobile vs. CIMC Vehicles Co |
Northking Information vs. Air China Ltd | Northking Information vs. Linzhou Heavy Machinery | Northking Information vs. Hubeiyichang Transportation Group | Northking Information vs. Sportsoul Co Ltd |
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 Portfolio Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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