Correlation Between CITIC Guoan and Bohai Leasing
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By analyzing existing cross correlation between CITIC Guoan Information and Bohai Leasing Co, you can compare the effects of market volatilities on CITIC Guoan and Bohai Leasing 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 Guoan with a short position of Bohai Leasing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Bohai Leasing.
Diversification Opportunities for CITIC Guoan and Bohai Leasing
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Bohai is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Bohai Leasing Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bohai Leasing and CITIC Guoan 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 Guoan Information are associated (or correlated) with Bohai Leasing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bohai Leasing has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Bohai Leasing go up and down completely randomly.
Pair Corralation between CITIC Guoan and Bohai Leasing
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Bohai Leasing. In addition to that, CITIC Guoan is 1.31 times more volatile than Bohai Leasing Co. It trades about -0.17 of its total potential returns per unit of risk. Bohai Leasing Co is currently generating about -0.16 per unit of volatility. If you would invest 409.00 in Bohai Leasing Co on October 30, 2024 and sell it today you would lose (53.00) from holding Bohai Leasing Co or give up 12.96% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Bohai Leasing Co
Performance |
| Timeline |
| CITIC Guoan Information |
| Bohai Leasing |
CITIC Guoan and Bohai Leasing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Bohai Leasing
The main advantage of trading using opposite CITIC Guoan and Bohai Leasing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Bohai Leasing 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 Bohai Leasing will offset losses from the drop in Bohai Leasing's long position.| CITIC Guoan vs. Anhui Huaheng Biotechnology | CITIC Guoan vs. Iat Automobile Technology | CITIC Guoan vs. Zotye Automobile Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology |
| Bohai Leasing vs. Postal Savings Bank | Bohai Leasing vs. Guosheng Financial Holding | Bohai Leasing vs. Advanced Technology Materials | Bohai Leasing vs. GRIPM Advanced Materials |
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.
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