Correlation Between CITIC Guoan and Ye Chiu
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By analyzing existing cross correlation between CITIC Guoan Information and Ye Chiu Metal, you can compare the effects of market volatilities on CITIC Guoan and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Ye Chiu.
Diversification Opportunities for CITIC Guoan and Ye Chiu
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and 601388 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Ye Chiu go up and down completely randomly.
Pair Corralation between CITIC Guoan and Ye Chiu
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Ye Chiu. In addition to that, CITIC Guoan is 1.62 times more volatile than Ye Chiu Metal. It trades about -0.21 of its total potential returns per unit of risk. Ye Chiu Metal is currently generating about -0.23 per unit of volatility. If you would invest 259.00 in Ye Chiu Metal on October 23, 2024 and sell it today you would lose (19.00) from holding Ye Chiu Metal or give up 7.34% 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. Ye Chiu Metal
Performance |
| Timeline |
| CITIC Guoan Information |
| Ye Chiu Metal |
CITIC Guoan and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Ye Chiu
The main advantage of trading using opposite CITIC Guoan and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu's long position.| CITIC Guoan vs. Semiconductor Manufacturing Intl | CITIC Guoan vs. Qumei Furniture Group | CITIC Guoan vs. Hunan Mendale Hometextile | CITIC Guoan vs. Will Semiconductor Co |
| Ye Chiu vs. Lontium Semiconductor Corp | Ye Chiu vs. Jointo Energy Investment | Ye Chiu vs. Puya Semiconductor Shanghai | Ye Chiu vs. Nuode Investment Co |
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.
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