Correlation Between Digital China and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Digital China Information and CITIC Guoan Information, you can compare the effects of market volatilities on Digital China 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 Digital China with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Digital China and CITIC Guoan.
Diversification Opportunities for Digital China and CITIC Guoan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Digital and CITIC is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Digital China 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 Digital China 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 Digital China 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 Digital China i.e., Digital China and CITIC Guoan go up and down completely randomly.
Pair Corralation between Digital China and CITIC Guoan
Assuming the 90 days trading horizon Digital China Information is expected to generate 1.22 times more return on investment than CITIC Guoan. However, Digital China is 1.22 times more volatile than CITIC Guoan Information. It trades about 0.15 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.04 per unit of risk. If you would invest 1,271 in Digital China Information on September 14, 2024 and sell it today you would earn a total of 136.00 from holding Digital China Information or generate 10.7% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Digital China Information vs. CITIC Guoan Information
Performance |
| Timeline |
| Digital China Information |
| CITIC Guoan Information |
Digital China and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Digital China and CITIC Guoan
The main advantage of trading using opposite Digital China and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Digital China 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.| Digital China vs. China Petroleum Chemical | Digital China vs. PetroChina Co Ltd | Digital China vs. China State Construction | Digital China vs. China Railway Group |
| CITIC Guoan vs. Tongding Interconnection Information | CITIC Guoan vs. Leaguer Shenzhen MicroElectronics | CITIC Guoan vs. Datang HuaYin Electric | CITIC Guoan vs. Focus Media Information |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| CEOs Directory Screen CEOs from public companies around the world |