Correlation Between CITIC Guoan and Ciwen Media
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By analyzing existing cross correlation between CITIC Guoan Information and Ciwen Media Co, you can compare the effects of market volatilities on CITIC Guoan and Ciwen Media 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 Ciwen Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Ciwen Media.
Diversification Opportunities for CITIC Guoan and Ciwen Media
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Ciwen is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Ciwen Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ciwen Media 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 Ciwen Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ciwen Media has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Ciwen Media go up and down completely randomly.
Pair Corralation between CITIC Guoan and Ciwen Media
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 0.63 times more return on investment than Ciwen Media. However, CITIC Guoan Information is 1.58 times less risky than Ciwen Media. It trades about 0.02 of its potential returns per unit of risk. Ciwen Media Co is currently generating about 0.01 per unit of risk. If you would invest 263.00 in CITIC Guoan Information on October 16, 2024 and sell it today you would earn a total of 9.00 from holding CITIC Guoan Information or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Ciwen Media Co
Performance |
| Timeline |
| CITIC Guoan Information |
| Ciwen Media |
CITIC Guoan and Ciwen Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Ciwen Media
The main advantage of trading using opposite CITIC Guoan and Ciwen Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Ciwen Media 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 Ciwen Media will offset losses from the drop in Ciwen Media's long position.| CITIC Guoan vs. Runjian Communication Co | CITIC Guoan vs. FSPG Hi Tech Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology | CITIC Guoan vs. Tianjin Hi Tech Development |
| Ciwen Media vs. Jiangxi Hengda Hi Tech | Ciwen Media vs. Guangdong Jingyi Metal | Ciwen Media vs. Runjian Communication Co | Ciwen Media vs. Anhui Jinhe Industrial |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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