Correlation Between CITIC Guoan and Dhc Software
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By analyzing existing cross correlation between CITIC Guoan Information and Dhc Software Co, you can compare the effects of market volatilities on CITIC Guoan and Dhc Software 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 Dhc Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Dhc Software.
Diversification Opportunities for CITIC Guoan and Dhc Software
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Dhc is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Dhc Software Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Dhc Software 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 Dhc Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Dhc Software has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Dhc Software go up and down completely randomly.
Pair Corralation between CITIC Guoan and Dhc Software
Assuming the 90 days trading horizon CITIC Guoan is expected to generate 2.31 times less return on investment than Dhc Software. But when comparing it to its historical volatility, CITIC Guoan Information is 1.2 times less risky than Dhc Software. It trades about 0.1 of its potential returns per unit of risk. Dhc Software Co is currently generating about 0.19 of returns per unit of risk over similar time horizon. If you would invest 680.00 in Dhc Software Co on September 5, 2024 and sell it today you would earn a total of 132.00 from holding Dhc Software Co or generate 19.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Dhc Software Co
Performance |
| Timeline |
| CITIC Guoan Information |
| Dhc Software |
CITIC Guoan and Dhc Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Dhc Software
The main advantage of trading using opposite CITIC Guoan and Dhc Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Dhc Software 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 Dhc Software will offset losses from the drop in Dhc Software's long position.| CITIC Guoan vs. PetroChina Co Ltd | CITIC Guoan vs. China Mobile Limited | CITIC Guoan vs. CNOOC Limited | CITIC Guoan vs. Ping An Insurance |
| Dhc Software vs. New China Life | Dhc Software vs. Ming Yang Smart | Dhc Software vs. 159681 | Dhc Software vs. 159005 |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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