Correlation Between CICT Mobile and Dawning Information
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By analyzing existing cross correlation between CICT Mobile Communication and Dawning Information Industry, you can compare the effects of market volatilities on CICT Mobile and Dawning 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 Dawning Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Dawning Information.
Diversification Opportunities for CICT Mobile and Dawning Information
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CICT and Dawning is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Dawning Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dawning 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 Dawning Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dawning Information has no effect on the direction of CICT Mobile i.e., CICT Mobile and Dawning Information go up and down completely randomly.
Pair Corralation between CICT Mobile and Dawning Information
Assuming the 90 days trading horizon CICT Mobile Communication is expected to under-perform the Dawning Information. But the stock apears to be less risky and, when comparing its historical volatility, CICT Mobile Communication is 1.66 times less risky than Dawning Information. The stock trades about -0.04 of its potential returns per unit of risk. The Dawning Information Industry is currently generating about -0.01 of returns per unit of risk over similar time horizon. 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 |
CICT Mobile Communication vs. Dawning Information Industry
Performance |
Timeline |
CICT Mobile Communication |
Dawning Information |
CICT Mobile and Dawning Information Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CICT Mobile and Dawning Information
The main advantage of trading using opposite CICT Mobile and Dawning Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Dawning 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 Dawning Information will offset losses from the drop in Dawning Information'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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