Correlation Between CITIC Guoan and Beijing Yanjing
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and Beijing Yanjing Brewery, you can compare the effects of market volatilities on CITIC Guoan and Beijing Yanjing 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 Beijing Yanjing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Beijing Yanjing.
Diversification Opportunities for CITIC Guoan and Beijing Yanjing
0.56 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITIC and Beijing is 0.56. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Beijing Yanjing Brewery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Yanjing Brewery 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 Beijing Yanjing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Yanjing Brewery has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Beijing Yanjing go up and down completely randomly.
Pair Corralation between CITIC Guoan and Beijing Yanjing
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.71 times more return on investment than Beijing Yanjing. However, CITIC Guoan is 1.71 times more volatile than Beijing Yanjing Brewery. It trades about 0.11 of its potential returns per unit of risk. Beijing Yanjing Brewery is currently generating about 0.02 per unit of risk. If you would invest 220.00 in CITIC Guoan Information on September 3, 2024 and sell it today you would earn a total of 131.00 from holding CITIC Guoan Information or generate 59.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Beijing Yanjing Brewery
Performance |
| Timeline |
| CITIC Guoan Information |
| Beijing Yanjing Brewery |
CITIC Guoan and Beijing Yanjing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Beijing Yanjing
The main advantage of trading using opposite CITIC Guoan and Beijing Yanjing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Beijing Yanjing 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 Beijing Yanjing will offset losses from the drop in Beijing Yanjing's long position.| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic Technology |
| Beijing Yanjing vs. CITIC Guoan Information | Beijing Yanjing vs. State Grid InformationCommunication | Beijing Yanjing vs. Guosheng Financial Holding | Beijing Yanjing vs. Invengo Information 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
Other Complementary Tools
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |