Correlation Between CITIC Guoan and Zhejiang Century
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and Zhejiang Century Huatong, you can compare the effects of market volatilities on CITIC Guoan and Zhejiang Century 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 Zhejiang Century. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Zhejiang Century.
Diversification Opportunities for CITIC Guoan and Zhejiang Century
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Zhejiang is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Zhejiang Century Huatong in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Century Huatong 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 Zhejiang Century. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Century Huatong has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Zhejiang Century go up and down completely randomly.
Pair Corralation between CITIC Guoan and Zhejiang Century
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 0.78 times more return on investment than Zhejiang Century. However, CITIC Guoan Information is 1.28 times less risky than Zhejiang Century. It trades about 0.04 of its potential returns per unit of risk. Zhejiang Century Huatong is currently generating about 0.02 per unit of risk. If you would invest 259.00 in CITIC Guoan Information on September 4, 2024 and sell it today you would earn a total of 109.00 from holding CITIC Guoan Information or generate 42.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 99.79% |
| Values | Daily Returns |
CITIC Guoan Information vs. Zhejiang Century Huatong
Performance |
| Timeline |
| CITIC Guoan Information |
| Zhejiang Century Huatong |
CITIC Guoan and Zhejiang Century Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Zhejiang Century
The main advantage of trading using opposite CITIC Guoan and Zhejiang Century positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Zhejiang Century 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 Zhejiang Century will offset losses from the drop in Zhejiang Century's long position.| CITIC Guoan vs. Zhejiang Qianjiang Motorcycle | CITIC Guoan vs. Hubei Dinglong Chemical | CITIC Guoan vs. Haima Automobile Group | CITIC Guoan vs. Jiangsu Xinri E Vehicle |
| Zhejiang Century vs. Shenzhen Bioeasy Biotechnology | Zhejiang Century vs. Tianshui Huatian Technology | Zhejiang Century vs. Sichuan Hebang Biotechnology | Zhejiang Century vs. Kingsignal Technology Co |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
Other Complementary Tools
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |