Correlation Between CICT Mobile and Sinomach Automobile
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By analyzing existing cross correlation between CICT Mobile Communication and Sinomach Automobile Co, you can compare the effects of market volatilities on CICT Mobile and Sinomach Automobile 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 Sinomach Automobile. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Sinomach Automobile.
Diversification Opportunities for CICT Mobile and Sinomach Automobile
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CICT and Sinomach is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Sinomach Automobile Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinomach Automobile 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 Sinomach Automobile. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinomach Automobile has no effect on the direction of CICT Mobile i.e., CICT Mobile and Sinomach Automobile go up and down completely randomly.
Pair Corralation between CICT Mobile and Sinomach Automobile
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the Sinomach Automobile. In addition to that, CICT Mobile is 1.52 times more volatile than Sinomach Automobile Co. It trades about -0.12 of its total potential returns per unit of risk. Sinomach Automobile Co is currently generating about -0.06 per unit of volatility. If you would invest 694.00 in Sinomach Automobile Co on September 10, 2024 and sell it today you would lose (16.00) from holding Sinomach Automobile Co or give up 2.31% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CICT Mobile Communication vs. Sinomach Automobile Co
Performance |
Timeline |
CICT Mobile Communication |
Sinomach Automobile |
CICT Mobile and Sinomach Automobile Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CICT Mobile and Sinomach Automobile
The main advantage of trading using opposite CICT Mobile and Sinomach Automobile positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Sinomach Automobile 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 Sinomach Automobile will offset losses from the drop in Sinomach Automobile'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 |
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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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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