Correlation Between CITIC Guoan and Wonders Information
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By analyzing existing cross correlation between CITIC Guoan Information and Wonders Information, you can compare the effects of market volatilities on CITIC Guoan and Wonders Information 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 Wonders Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Wonders Information.
Diversification Opportunities for CITIC Guoan and Wonders Information
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Wonders is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Wonders Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wonders Information 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 Wonders Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wonders Information has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Wonders Information go up and down completely randomly.
Pair Corralation between CITIC Guoan and Wonders Information
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 0.84 times more return on investment than Wonders Information. However, CITIC Guoan Information is 1.18 times less risky than Wonders Information. It trades about -0.21 of its potential returns per unit of risk. Wonders Information is currently generating about -0.25 per unit of risk. If you would invest 339.00 in CITIC Guoan Information on October 18, 2024 and sell it today you would lose (42.00) from holding CITIC Guoan Information or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Wonders Information
Performance |
| Timeline |
| CITIC Guoan Information |
| Wonders Information |
CITIC Guoan and Wonders Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Wonders Information
The main advantage of trading using opposite CITIC Guoan and Wonders Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Wonders Information 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 Wonders Information will offset losses from the drop in Wonders Information's long position.| CITIC Guoan vs. Marssenger Kitchenware Co | CITIC Guoan vs. Cangzhou Mingzhu Plastic | CITIC Guoan vs. BTG Hotels Group | CITIC Guoan vs. Ningbo Tip Rubber |
| Wonders Information vs. Zhongrun Resources Investment | Wonders Information vs. Kunwu Jiuding Investment | Wonders Information vs. Ningbo Ligong Online | Wonders Information vs. Vanfund Urban Investment |
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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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