Correlation Between CITIC Guoan and Changchun Faway
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By analyzing existing cross correlation between CITIC Guoan Information and Changchun Faway Automobile, you can compare the effects of market volatilities on CITIC Guoan and Changchun Faway 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 Changchun Faway. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Changchun Faway.
Diversification Opportunities for CITIC Guoan and Changchun Faway
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Changchun is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Changchun Faway Automobile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun Faway Auto 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 Changchun Faway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun Faway Auto has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Changchun Faway go up and down completely randomly.
Pair Corralation between CITIC Guoan and Changchun Faway
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.83 times more return on investment than Changchun Faway. However, CITIC Guoan is 1.83 times more volatile than Changchun Faway Automobile. It trades about 0.09 of its potential returns per unit of risk. Changchun Faway Automobile is currently generating about 0.1 per unit of risk. If you would invest 225.00 in CITIC Guoan Information on December 4, 2024 and sell it today you would earn a total of 82.00 from holding CITIC Guoan Information or generate 36.44% 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. Changchun Faway Automobile
Performance |
| Timeline |
| CITIC Guoan Information |
| Changchun Faway Auto |
CITIC Guoan and Changchun Faway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Changchun Faway
The main advantage of trading using opposite CITIC Guoan and Changchun Faway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Changchun Faway 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 Changchun Faway will offset losses from the drop in Changchun Faway's long position.| CITIC Guoan vs. Ningbo MedicalSystem Biotechnology | CITIC Guoan vs. Bloomage Biotechnology Corp | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology | CITIC Guoan vs. Zoy Home Furnishing |
| Changchun Faway vs. Fujian Newland Computer | Changchun Faway vs. Bank of Suzhou | Changchun Faway vs. Unisplendour Corp | Changchun Faway vs. Suzhou Mingzhi 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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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