Correlation Between CITIC Guoan and Emdoor Information
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and Emdoor Information Co, you can compare the effects of market volatilities on CITIC Guoan and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Emdoor Information.
Diversification Opportunities for CITIC Guoan and Emdoor Information
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Emdoor is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Emdoor Information go up and down completely randomly.
Pair Corralation between CITIC Guoan and Emdoor Information
Assuming the 90 days trading horizon CITIC Guoan is expected to generate 3.45 times less return on investment than Emdoor Information. In addition to that, CITIC Guoan is 1.17 times more volatile than Emdoor Information Co. It trades about 0.06 of its total potential returns per unit of risk. Emdoor Information Co is currently generating about 0.25 per unit of volatility. If you would invest 4,401 in Emdoor Information Co on September 3, 2024 and sell it today you would earn a total of 751.00 from holding Emdoor Information Co or generate 17.06% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Emdoor Information Co
Performance |
| Timeline |
| CITIC Guoan Information |
| Emdoor Information |
CITIC Guoan and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Emdoor Information
The main advantage of trading using opposite CITIC Guoan and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information'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 |
| Emdoor Information vs. PetroChina Co Ltd | Emdoor Information vs. China Mobile Limited | Emdoor Information vs. Industrial and Commercial | Emdoor Information vs. China Life Insurance |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum |