Correlation Between CITIC Guoan and Westone Information
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By analyzing existing cross correlation between CITIC Guoan Information and Westone Information Industry, you can compare the effects of market volatilities on CITIC Guoan and Westone 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 Westone Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Westone Information.
Diversification Opportunities for CITIC Guoan and Westone Information
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Westone is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Westone Information Industry in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Westone 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 Westone Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Westone Information has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Westone Information go up and down completely randomly.
Pair Corralation between CITIC Guoan and Westone Information
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.4 times more return on investment than Westone Information. However, CITIC Guoan is 1.4 times more volatile than Westone Information Industry. It trades about 0.06 of its potential returns per unit of risk. Westone Information Industry is currently generating about 0.01 per unit of risk. If you would invest 339.00 in CITIC Guoan Information on September 3, 2024 and sell it today you would earn a total of 12.00 from holding CITIC Guoan Information or generate 3.54% 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. Westone Information Industry
Performance |
| Timeline |
| CITIC Guoan Information |
| Westone Information |
CITIC Guoan and Westone Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Westone Information
The main advantage of trading using opposite CITIC Guoan and Westone Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Westone 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 Westone Information will offset losses from the drop in Westone 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 |
| Westone Information vs. Agricultural Bank of | Westone Information vs. China Construction Bank | Westone Information vs. Postal Savings Bank | Westone Information vs. Bank of Communications |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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