Correlation Between CICT Mobile and Zhongtong Guomai
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By analyzing existing cross correlation between CICT Mobile Communication and Zhongtong Guomai Communication, you can compare the effects of market volatilities on CICT Mobile and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of CICT Mobile and Zhongtong Guomai.
Diversification Opportunities for CICT Mobile and Zhongtong Guomai
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CICT and Zhongtong is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CICT Mobile Communication and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of CICT Mobile i.e., CICT Mobile and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between CICT Mobile and Zhongtong Guomai
Assuming the 90 days trading horizon CICT Mobile is expected to generate 1.83 times less return on investment than Zhongtong Guomai. But when comparing it to its historical volatility, CICT Mobile Communication is 1.17 times less risky than Zhongtong Guomai. It trades about 0.15 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 725.00 in Zhongtong Guomai Communication on September 10, 2024 and sell it today you would earn a total of 447.00 from holding Zhongtong Guomai Communication or generate 61.66% 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. Zhongtong Guomai Communication
Performance |
Timeline |
CICT Mobile Communication |
Zhongtong Guomai Com |
CICT Mobile and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CICT Mobile and Zhongtong Guomai
The main advantage of trading using opposite CICT Mobile and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CICT Mobile position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai'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 |
Zhongtong Guomai vs. Linewell Software Co | Zhongtong Guomai vs. Servyou Software Group | Zhongtong Guomai vs. Tianjin Ruixin Technology | Zhongtong Guomai vs. Kingclean Electric Co |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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