Correlation Between CITIC Guoan and Zhuzhou Kibing
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By analyzing existing cross correlation between CITIC Guoan Information and Zhuzhou Kibing Group, you can compare the effects of market volatilities on CITIC Guoan and Zhuzhou Kibing 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 Zhuzhou Kibing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Zhuzhou Kibing.
Diversification Opportunities for CITIC Guoan and Zhuzhou Kibing
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Zhuzhou is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Zhuzhou Kibing Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuzhou Kibing Group 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 Zhuzhou Kibing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuzhou Kibing Group has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Zhuzhou Kibing go up and down completely randomly.
Pair Corralation between CITIC Guoan and Zhuzhou Kibing
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Zhuzhou Kibing. In addition to that, CITIC Guoan is 1.29 times more volatile than Zhuzhou Kibing Group. It trades about -0.16 of its total potential returns per unit of risk. Zhuzhou Kibing Group is currently generating about -0.08 per unit of volatility. If you would invest 585.00 in Zhuzhou Kibing Group on October 28, 2024 and sell it today you would lose (21.00) from holding Zhuzhou Kibing Group or give up 3.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Zhuzhou Kibing Group
Performance |
| Timeline |
| CITIC Guoan Information |
| Zhuzhou Kibing Group |
CITIC Guoan and Zhuzhou Kibing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Zhuzhou Kibing
The main advantage of trading using opposite CITIC Guoan and Zhuzhou Kibing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Zhuzhou Kibing 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 Zhuzhou Kibing will offset losses from the drop in Zhuzhou Kibing's long position.| CITIC Guoan vs. Shanghai Jinfeng Wine | CITIC Guoan vs. Gansu Huangtai Wine marketing | CITIC Guoan vs. Citic Guoan Wine | CITIC Guoan vs. Jiangsu Financial Leasing |
| Zhuzhou Kibing vs. Ming Yang Smart | Zhuzhou Kibing vs. 159681 | Zhuzhou Kibing vs. 159005 | Zhuzhou Kibing vs. Loctek Ergonomic 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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