Correlation Between Cto Realty and LINGYI ITECH

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Can any of the company-specific risk be diversified away by investing in both Cto Realty and LINGYI ITECH at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cto Realty and LINGYI ITECH into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cto Realty Growth and LINGYI ITECH GUAN, you can compare the effects of market volatilities on Cto Realty and LINGYI ITECH 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 Cto Realty with a short position of LINGYI ITECH. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cto Realty and LINGYI ITECH.

Diversification Opportunities for Cto Realty and LINGYI ITECH

0.49
  Correlation Coefficient

Very weak diversification

The 3 months correlation between Cto Realty and LINGYI is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding Cto Realty Growth and LINGYI ITECH GUAN in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on LINGYI ITECH GUAN and Cto Realty 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 Cto Realty Growth are associated (or correlated) with LINGYI ITECH. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of LINGYI ITECH GUAN has no effect on the direction of Cto Realty i.e., Cto Realty and LINGYI ITECH go up and down completely randomly.

Pair Corralation between Cto Realty and LINGYI ITECH

Considering the 90-day investment horizon Cto Realty Growth is expected to generate 0.96 times more return on investment than LINGYI ITECH. However, Cto Realty Growth is 1.04 times less risky than LINGYI ITECH. It trades about -0.33 of its potential returns per unit of risk. LINGYI ITECH GUAN is currently generating about -0.42 per unit of risk. If you would invest  2,200  in Cto Realty Growth on June 26, 2022 and sell it today you would lose (259.00)  from holding Cto Realty Growth or give up 11.77% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthWeak
Accuracy95.24%
ValuesDaily Returns

Cto Realty Growth  vs.  LINGYI ITECH GUAN

 Performance (%) 
       Timeline  
Cto Realty Growth 
Cto Realty Performance
0 of 100
Over the last 90 days Cto Realty Growth has generated negative risk-adjusted returns adding no value to investors with long positions. Despite quite persistent basic indicators, Cto Realty is not utilizing all of its potentials. The current stock price mess, may contribute to short-term losses for the institutional investors.

Cto Realty Price Channel

LINGYI ITECH GUAN 
LINGYI Performance
0 of 100
Over the last 90 days LINGYI ITECH GUAN has generated negative risk-adjusted returns adding no value to investors with long positions. Despite latest weak performance, the Stock's basic indicators remain strong and the current disturbance on Wall Street may also be a sign of long term gains for the company investors.

LINGYI Price Channel

Cto Realty and LINGYI ITECH Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Cto Realty and LINGYI ITECH

The main advantage of trading using opposite Cto Realty and LINGYI ITECH positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cto Realty position performs unexpectedly, LINGYI ITECH 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 LINGYI ITECH will offset losses from the drop in LINGYI ITECH's long position.
Cto Realty vs. Industrias Bachoco SA
The idea behind Cto Realty Growth and LINGYI ITECH GUAN pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
LINGYI ITECH vs. TES TOUCH EMBEDDED
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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.

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