Correlation Between CITIC Guoan and Hangzhou Gisway
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and Hangzhou Gisway Information, you can compare the effects of market volatilities on CITIC Guoan and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Hangzhou Gisway.
Diversification Opportunities for CITIC Guoan and Hangzhou Gisway
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Hangzhou is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between CITIC Guoan and Hangzhou Gisway
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Hangzhou Gisway. In addition to that, CITIC Guoan is 1.51 times more volatile than Hangzhou Gisway Information. It trades about -0.05 of its total potential returns per unit of risk. Hangzhou Gisway Information is currently generating about 0.06 per unit of volatility. If you would invest 3,143 in Hangzhou Gisway Information on September 1, 2024 and sell it today you would earn a total of 91.00 from holding Hangzhou Gisway Information or generate 2.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Hangzhou Gisway Information
Performance |
| Timeline |
| CITIC Guoan Information |
| Hangzhou Gisway Info |
CITIC Guoan and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Hangzhou Gisway
The main advantage of trading using opposite CITIC Guoan and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| CITIC Guoan vs. China Petroleum Chemical | CITIC Guoan vs. PetroChina Co Ltd | CITIC Guoan vs. China State Construction | CITIC Guoan vs. China Railway Group |
| Hangzhou Gisway vs. China Petroleum Chemical | Hangzhou Gisway vs. PetroChina Co Ltd | Hangzhou Gisway vs. China State Construction | Hangzhou Gisway vs. China Railway Group |
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 Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Other Complementary Tools
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets |