Correlation Between CITIC Guoan and Integrated Electronic
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By analyzing existing cross correlation between CITIC Guoan Information and Integrated Electronic Systems, you can compare the effects of market volatilities on CITIC Guoan and Integrated Electronic 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 Integrated Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Integrated Electronic.
Diversification Opportunities for CITIC Guoan and Integrated Electronic
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Integrated is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Integrated Electronic Systems in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Integrated Electronic 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 Integrated Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Integrated Electronic has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Integrated Electronic go up and down completely randomly.
Pair Corralation between CITIC Guoan and Integrated Electronic
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Integrated Electronic. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Guoan Information is 1.16 times less risky than Integrated Electronic. The stock trades about -0.2 of its potential returns per unit of risk. The Integrated Electronic Systems is currently generating about 0.06 of returns per unit of risk over similar time horizon. If you would invest 728.00 in Integrated Electronic Systems on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Integrated Electronic Systems or generate 3.16% 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. Integrated Electronic Systems
Performance |
| Timeline |
| CITIC Guoan Information |
| Integrated Electronic |
CITIC Guoan and Integrated Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Integrated Electronic
The main advantage of trading using opposite CITIC Guoan and Integrated Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Integrated Electronic 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 Integrated Electronic will offset losses from the drop in Integrated Electronic's long position.| CITIC Guoan vs. Kweichow Moutai Co | CITIC Guoan vs. Shenzhen Mindray Bio Medical | CITIC Guoan vs. G bits Network Technology | CITIC Guoan vs. Beijing Roborock Technology |
| Integrated Electronic vs. Agricultural Bank of | Integrated Electronic vs. Industrial and Commercial | Integrated Electronic vs. Bank of China | Integrated Electronic vs. PetroChina Co Ltd |
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 Funds Screener module to find actively-traded funds from around the world traded on over 30 global exchanges.
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