Correlation Between CITIC Guoan and By Health
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By analyzing existing cross correlation between CITIC Guoan Information and By health, you can compare the effects of market volatilities on CITIC Guoan and By Health 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 By Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and By Health.
Diversification Opportunities for CITIC Guoan and By Health
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and 300146 is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and By health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on By health 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 By Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of By health has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and By Health go up and down completely randomly.
Pair Corralation between CITIC Guoan and By Health
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.15 times more return on investment than By Health. However, CITIC Guoan is 1.15 times more volatile than By health. It trades about 0.04 of its potential returns per unit of risk. By health is currently generating about -0.04 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 | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. By health
Performance |
| Timeline |
| CITIC Guoan Information |
| By health |
CITIC Guoan and By Health Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and By Health
The main advantage of trading using opposite CITIC Guoan and By Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, By Health 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 By Health will offset losses from the drop in By Health'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 |
| By Health vs. Biwin Storage Technology | By Health vs. PetroChina Co Ltd | By Health vs. Industrial and Commercial | By Health vs. China Construction Bank |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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