Correlation Between Citic Offshore and Hua Xia
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By analyzing existing cross correlation between Citic Offshore Helicopter and Hua Xia Bank, you can compare the effects of market volatilities on Citic Offshore and Hua Xia 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 Citic Offshore with a short position of Hua Xia. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Hua Xia.
Diversification Opportunities for Citic Offshore and Hua Xia
0.03 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Citic and Hua is 0.03. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Hua Xia Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hua Xia Bank and Citic Offshore 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 Citic Offshore Helicopter are associated (or correlated) with Hua Xia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hua Xia Bank has no effect on the direction of Citic Offshore i.e., Citic Offshore and Hua Xia go up and down completely randomly.
Pair Corralation between Citic Offshore and Hua Xia
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to under-perform the Hua Xia. In addition to that, Citic Offshore is 2.97 times more volatile than Hua Xia Bank. It trades about -0.23 of its total potential returns per unit of risk. Hua Xia Bank is currently generating about -0.16 per unit of volatility. If you would invest 778.00 in Hua Xia Bank on October 15, 2024 and sell it today you would lose (30.00) from holding Hua Xia Bank or give up 3.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Hua Xia Bank
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Hua Xia Bank |
Citic Offshore and Hua Xia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Hua Xia
The main advantage of trading using opposite Citic Offshore and Hua Xia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Hua Xia 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 Hua Xia will offset losses from the drop in Hua Xia's long position.| Citic Offshore vs. Anhui Huaren Health | Citic Offshore vs. Dezhan HealthCare Co | Citic Offshore vs. Goodwill E Health | Citic Offshore vs. Youngy Health Co |
| Hua Xia vs. Beijing Bewinner Communications | Hua Xia vs. Tongyu Communication | Hua Xia vs. Bus Online Co | Hua Xia vs. Guangzhou Haige Communications |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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