Correlation Between CITIC Guoan and State Grid
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By analyzing existing cross correlation between CITIC Guoan Information and State Grid InformationCommunication, you can compare the effects of market volatilities on CITIC Guoan and State Grid 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 State Grid. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and State Grid.
Diversification Opportunities for CITIC Guoan and State Grid
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and State is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and State Grid InformationCommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on State Grid Informati 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 State Grid. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of State Grid Informati has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and State Grid go up and down completely randomly.
Pair Corralation between CITIC Guoan and State Grid
Assuming the 90 days trading horizon CITIC Guoan is expected to generate 1.1 times less return on investment than State Grid. But when comparing it to its historical volatility, CITIC Guoan Information is 1.08 times less risky than State Grid. It trades about 0.04 of its potential returns per unit of risk. State Grid InformationCommunication is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 1,524 in State Grid InformationCommunication on September 4, 2024 and sell it today you would earn a total of 691.00 from holding State Grid InformationCommunication or generate 45.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. State Grid InformationCommunic
Performance |
| Timeline |
| CITIC Guoan Information |
| State Grid Informati |
CITIC Guoan and State Grid Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and State Grid
The main advantage of trading using opposite CITIC Guoan and State Grid positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, State Grid 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 State Grid will offset losses from the drop in State Grid'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 |
| State Grid vs. Industrial and Commercial | State Grid vs. China Construction Bank | State Grid vs. Bank of China | State Grid vs. Agricultural Bank of |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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