Correlation Between Tieling Newcity and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Tieling Newcity Investment and CITIC Guoan Information, you can compare the effects of market volatilities on Tieling Newcity 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 Tieling Newcity with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tieling Newcity and CITIC Guoan.
Diversification Opportunities for Tieling Newcity and CITIC Guoan
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tieling and CITIC is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Tieling Newcity Investment 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 Tieling Newcity 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 Tieling Newcity Investment 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 Tieling Newcity i.e., Tieling Newcity and CITIC Guoan go up and down completely randomly.
Pair Corralation between Tieling Newcity and CITIC Guoan
Assuming the 90 days trading horizon Tieling Newcity Investment is expected to generate 0.8 times more return on investment than CITIC Guoan. However, Tieling Newcity Investment is 1.25 times less risky than CITIC Guoan. It trades about 0.39 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 262.00 in Tieling Newcity Investment on September 14, 2024 and sell it today you would earn a total of 53.00 from holding Tieling Newcity Investment or generate 20.23% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tieling Newcity Investment vs. CITIC Guoan Information
Performance |
| Timeline |
| Tieling Newcity Inve |
| CITIC Guoan Information |
Tieling Newcity and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tieling Newcity and CITIC Guoan
The main advantage of trading using opposite Tieling Newcity and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tieling Newcity 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.| Tieling Newcity vs. PetroChina Co Ltd | Tieling Newcity vs. China Mobile Limited | Tieling Newcity vs. CNOOC Limited | Tieling Newcity vs. Ping An Insurance |
| 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
Other Complementary Tools
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |