Correlation Between Shenzhen SDG and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen SDG Information and CITIC Guoan Information, you can compare the effects of market volatilities on Shenzhen SDG and CITIC Guoan 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 Shenzhen SDG with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and CITIC Guoan.
Diversification Opportunities for Shenzhen SDG and CITIC Guoan
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and CITIC is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Shenzhen SDG 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 Shenzhen SDG Information are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Shenzhen SDG i.e., Shenzhen SDG and CITIC Guoan go up and down completely randomly.
Pair Corralation between Shenzhen SDG and CITIC Guoan
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 3.87 times less return on investment than CITIC Guoan. In addition to that, Shenzhen SDG is 1.49 times more volatile than CITIC Guoan Information. It trades about 0.01 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.04 per unit of volatility. If you would invest 259.00 in CITIC Guoan Information on September 3, 2024 and sell it today you would earn a total of 92.00 from holding CITIC Guoan Information or generate 35.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen SDG Information vs. CITIC Guoan Information
Performance |
| Timeline |
| Shenzhen SDG Information |
| CITIC Guoan Information |
Shenzhen SDG and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen SDG and CITIC Guoan
The main advantage of trading using opposite Shenzhen SDG and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Shenzhen SDG vs. Agricultural Bank of | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Postal Savings Bank | Shenzhen SDG vs. Bank of Communications |
| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
Other Complementary Tools
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm |