Correlation Between CITIC Guoan and Fiberhome Telecommunicatio
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Guoan Information and Fiberhome Telecommunication Technologies, you can compare the effects of market volatilities on CITIC Guoan and Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Fiberhome Telecommunicatio.
Diversification Opportunities for CITIC Guoan and Fiberhome Telecommunicatio
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Fiberhome is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Fiberhome Telecommunication Te in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Fiberhome Telecommunicatio has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Fiberhome Telecommunicatio go up and down completely randomly.
Pair Corralation between CITIC Guoan and Fiberhome Telecommunicatio
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.77 times more return on investment than Fiberhome Telecommunicatio. However, CITIC Guoan is 1.77 times more volatile than Fiberhome Telecommunication Technologies. It trades about 0.22 of its potential returns per unit of risk. Fiberhome Telecommunication Technologies is currently generating about 0.11 per unit of risk. If you would invest 259.00 in CITIC Guoan Information on September 13, 2024 and sell it today you would earn a total of 111.00 from holding CITIC Guoan Information or generate 42.86% 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. Fiberhome Telecommunication Te
Performance |
| Timeline |
| CITIC Guoan Information |
| Fiberhome Telecommunicatio |
CITIC Guoan and Fiberhome Telecommunicatio Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Fiberhome Telecommunicatio
The main advantage of trading using opposite CITIC Guoan and Fiberhome Telecommunicatio positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Fiberhome Telecommunicatio 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 Fiberhome Telecommunicatio will offset losses from the drop in Fiberhome Telecommunicatio's long position.| CITIC Guoan vs. Lutian Machinery Co | CITIC Guoan vs. PetroChina Co Ltd | CITIC Guoan vs. Bank of China | CITIC Guoan vs. China Citic 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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Stocks Directory Find actively traded stocks across global markets | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |