Correlation Between CITIC Guoan and Qingdao Rural
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By analyzing existing cross correlation between CITIC Guoan Information and Qingdao Rural Commercial, you can compare the effects of market volatilities on CITIC Guoan and Qingdao Rural 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 Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Qingdao Rural.
Diversification Opportunities for CITIC Guoan and Qingdao Rural
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Qingdao is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial 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 Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Qingdao Rural go up and down completely randomly.
Pair Corralation between CITIC Guoan and Qingdao Rural
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.47 times more return on investment than Qingdao Rural. However, CITIC Guoan is 1.47 times more volatile than Qingdao Rural Commercial. It trades about 0.12 of its potential returns per unit of risk. Qingdao Rural Commercial is currently generating about 0.13 per unit of risk. If you would invest 339.00 in CITIC Guoan Information on September 4, 2024 and sell it today you would earn a total of 29.00 from holding CITIC Guoan Information or generate 8.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
CITIC Guoan Information vs. Qingdao Rural Commercial
Performance |
| Timeline |
| CITIC Guoan Information |
| Qingdao Rural Commercial |
CITIC Guoan and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Qingdao Rural
The main advantage of trading using opposite CITIC Guoan and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural'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 |
| Qingdao Rural vs. Jiangnan Mould Plastic | Qingdao Rural vs. Ningbo Tip Rubber | Qingdao Rural vs. Suzhou Xingye Material | Qingdao Rural vs. Dongguan Aohai Technology |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
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