Correlation Between CITIC Guoan and Cultural Investment
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By analyzing existing cross correlation between CITIC Guoan Information and Cultural Investment Holdings, you can compare the effects of market volatilities on CITIC Guoan and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Cultural Investment.
Diversification Opportunities for CITIC Guoan and Cultural Investment
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Cultural is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Cultural Investment go up and down completely randomly.
Pair Corralation between CITIC Guoan and Cultural Investment
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Cultural Investment. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Guoan Information is 1.17 times less risky than Cultural Investment. The stock trades about -0.04 of its potential returns per unit of risk. The Cultural Investment Holdings is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 247.00 in Cultural Investment Holdings on September 14, 2024 and sell it today you would lose (2.00) from holding Cultural Investment Holdings or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Cultural Investment Holdings
Performance |
| Timeline |
| CITIC Guoan Information |
| Cultural Investment |
CITIC Guoan and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Cultural Investment
The main advantage of trading using opposite CITIC Guoan and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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