Correlation Between CITIC Guoan and Zhongzhu Medical
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By analyzing existing cross correlation between CITIC Guoan Information and Zhongzhu Medical Holdings, you can compare the effects of market volatilities on CITIC Guoan and Zhongzhu Medical 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 Zhongzhu Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Zhongzhu Medical.
Diversification Opportunities for CITIC Guoan and Zhongzhu Medical
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Zhongzhu is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Zhongzhu Medical Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongzhu Medical Holdings 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 Zhongzhu Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongzhu Medical Holdings has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Zhongzhu Medical go up and down completely randomly.
Pair Corralation between CITIC Guoan and Zhongzhu Medical
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.24 times more return on investment than Zhongzhu Medical. However, CITIC Guoan is 1.24 times more volatile than Zhongzhu Medical Holdings. It trades about 0.04 of its potential returns per unit of risk. Zhongzhu Medical Holdings is currently generating about -0.01 per unit of risk. If you would invest 259.00 in CITIC Guoan Information on September 14, 2024 and sell it today you would earn a total of 113.00 from holding CITIC Guoan Information or generate 43.63% 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. Zhongzhu Medical Holdings
Performance |
| Timeline |
| CITIC Guoan Information |
| Zhongzhu Medical Holdings |
CITIC Guoan and Zhongzhu Medical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Zhongzhu Medical
The main advantage of trading using opposite CITIC Guoan and Zhongzhu Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Zhongzhu Medical 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 Zhongzhu Medical will offset losses from the drop in Zhongzhu Medical'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 |
| Zhongzhu Medical vs. Zhongtong Guomai Communication | Zhongzhu Medical vs. Changchun Faway Automobile | Zhongzhu Medical vs. Changchun UP Optotech | Zhongzhu Medical vs. Saurer Intelligent Technology |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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