Correlation Between CITIC Guoan and Xinjiang Tianshun
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By analyzing existing cross correlation between CITIC Guoan Information and Xinjiang Tianshun Supply, you can compare the effects of market volatilities on CITIC Guoan and Xinjiang Tianshun 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 Xinjiang Tianshun. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Xinjiang Tianshun.
Diversification Opportunities for CITIC Guoan and Xinjiang Tianshun
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Xinjiang is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Xinjiang Tianshun Supply in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianshun Supply 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 Xinjiang Tianshun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianshun Supply has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Xinjiang Tianshun go up and down completely randomly.
Pair Corralation between CITIC Guoan and Xinjiang Tianshun
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.31 times more return on investment than Xinjiang Tianshun. However, CITIC Guoan is 1.31 times more volatile than Xinjiang Tianshun Supply. It trades about 0.21 of its potential returns per unit of risk. Xinjiang Tianshun Supply is currently generating about 0.2 per unit of risk. If you would invest 224.00 in CITIC Guoan Information on September 12, 2024 and sell it today you would earn a total of 135.00 from holding CITIC Guoan Information or generate 60.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 98.28% |
| Values | Daily Returns |
CITIC Guoan Information vs. Xinjiang Tianshun Supply
Performance |
| Timeline |
| CITIC Guoan Information |
| Xinjiang Tianshun Supply |
CITIC Guoan and Xinjiang Tianshun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Xinjiang Tianshun
The main advantage of trading using opposite CITIC Guoan and Xinjiang Tianshun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Xinjiang Tianshun 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 Xinjiang Tianshun will offset losses from the drop in Xinjiang Tianshun's long position.| CITIC Guoan vs. Lutian Machinery Co | CITIC Guoan vs. PetroChina Co Ltd | CITIC Guoan vs. Bank of China | CITIC Guoan vs. China Citic Bank |
| Xinjiang Tianshun vs. Beijing SPC Environment | Xinjiang Tianshun vs. Hang Xiao Steel | Xinjiang Tianshun vs. King Strong New Material | Xinjiang Tianshun vs. Tianjin Capital Environmental |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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