Correlation Between CITIC Guoan and Bank of XiAn
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By analyzing existing cross correlation between CITIC Guoan Information and Bank of XiAn, you can compare the effects of market volatilities on CITIC Guoan and Bank of XiAn 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 Bank of XiAn. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Bank of XiAn.
Diversification Opportunities for CITIC Guoan and Bank of XiAn
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Bank is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Bank of XiAn in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of XiAn 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 Bank of XiAn. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of XiAn has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Bank of XiAn go up and down completely randomly.
Pair Corralation between CITIC Guoan and Bank of XiAn
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 2.1 times more return on investment than Bank of XiAn. However, CITIC Guoan is 2.1 times more volatile than Bank of XiAn. It trades about 0.12 of its potential returns per unit of risk. Bank of XiAn is currently generating about 0.04 per unit of risk. If you would invest 339.00 in CITIC Guoan Information on September 4, 2024 and sell it today you would earn a total of 29.00 from holding CITIC Guoan Information or generate 8.55% 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. Bank of XiAn
Performance |
| Timeline |
| CITIC Guoan Information |
| Bank of XiAn |
CITIC Guoan and Bank of XiAn Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Bank of XiAn
The main advantage of trading using opposite CITIC Guoan and Bank of XiAn positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Bank of XiAn 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 Bank of XiAn will offset losses from the drop in Bank of XiAn'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 |
| Bank of XiAn vs. Luyin Investment Group | Bank of XiAn vs. Jointo Energy Investment | Bank of XiAn vs. Hunan Investment Group | Bank of XiAn vs. Harbin Hatou Investment |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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