Correlation Between CITIC Guoan and Hainan Mining
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By analyzing existing cross correlation between CITIC Guoan Information and Hainan Mining Co, you can compare the effects of market volatilities on CITIC Guoan and Hainan Mining 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 Hainan Mining. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Hainan Mining.
Diversification Opportunities for CITIC Guoan and Hainan Mining
0.65 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Hainan is 0.65. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Hainan Mining Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hainan Mining 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 Hainan Mining. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hainan Mining has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Hainan Mining go up and down completely randomly.
Pair Corralation between CITIC Guoan and Hainan Mining
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.12 times more return on investment than Hainan Mining. However, CITIC Guoan is 1.12 times more volatile than Hainan Mining Co. It trades about 0.02 of its potential returns per unit of risk. Hainan Mining Co is currently generating about -0.01 per unit of risk. If you would invest 263.00 in CITIC Guoan Information on October 16, 2024 and sell it today you would earn a total of 9.00 from holding CITIC Guoan Information or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Hainan Mining Co
Performance |
| Timeline |
| CITIC Guoan Information |
| Hainan Mining |
CITIC Guoan and Hainan Mining Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Hainan Mining
The main advantage of trading using opposite CITIC Guoan and Hainan Mining positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Hainan Mining 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 Hainan Mining will offset losses from the drop in Hainan Mining's long position.| CITIC Guoan vs. Runjian Communication Co | CITIC Guoan vs. FSPG Hi Tech Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology | CITIC Guoan vs. Tianjin Hi Tech Development |
| Hainan Mining vs. Zhongfu Information | Hainan Mining vs. Leyard Optoelectronic | Hainan Mining vs. Hygon Information Technology | Hainan Mining vs. CITIC Guoan Information |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
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