Correlation Between CITIC Guoan and Kunwu Jiuding
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and Kunwu Jiuding Investment, you can compare the effects of market volatilities on CITIC Guoan and Kunwu Jiuding 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 Kunwu Jiuding. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Kunwu Jiuding.
Diversification Opportunities for CITIC Guoan and Kunwu Jiuding
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Kunwu is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Kunwu Jiuding Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Kunwu Jiuding Investment 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 Kunwu Jiuding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Kunwu Jiuding Investment has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Kunwu Jiuding go up and down completely randomly.
Pair Corralation between CITIC Guoan and Kunwu Jiuding
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Kunwu Jiuding. In addition to that, CITIC Guoan is 1.07 times more volatile than Kunwu Jiuding Investment. It trades about -0.04 of its total potential returns per unit of risk. Kunwu Jiuding Investment is currently generating about -0.01 per unit of volatility. If you would invest 1,677 in Kunwu Jiuding Investment on September 14, 2024 and sell it today you would lose (24.00) from holding Kunwu Jiuding Investment or give up 1.43% 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. Kunwu Jiuding Investment
Performance |
| Timeline |
| CITIC Guoan Information |
| Kunwu Jiuding Investment |
CITIC Guoan and Kunwu Jiuding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Kunwu Jiuding
The main advantage of trading using opposite CITIC Guoan and Kunwu Jiuding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Kunwu Jiuding 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 Kunwu Jiuding will offset losses from the drop in Kunwu Jiuding's long position.| CITIC Guoan vs. Tongding Interconnection Information | CITIC Guoan vs. Leaguer Shenzhen MicroElectronics | CITIC Guoan vs. Datang HuaYin Electric | CITIC Guoan vs. Focus Media Information |
| Kunwu Jiuding vs. Lier Chemical Co | Kunwu Jiuding vs. Shenyang Chemical Industry | Kunwu Jiuding vs. Guangzhou Jinyi Media | Kunwu Jiuding vs. Beijing Jiaman Dress |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital |