Correlation Between CITIC Guoan and Nanjing OLO
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By analyzing existing cross correlation between CITIC Guoan Information and Nanjing OLO Home, you can compare the effects of market volatilities on CITIC Guoan and Nanjing OLO 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 Nanjing OLO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Nanjing OLO.
Diversification Opportunities for CITIC Guoan and Nanjing OLO
0.62 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Nanjing is 0.62. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Nanjing OLO Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing OLO Home 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 Nanjing OLO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing OLO Home has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Nanjing OLO go up and down completely randomly.
Pair Corralation between CITIC Guoan and Nanjing OLO
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Nanjing OLO. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Guoan Information is 1.21 times less risky than Nanjing OLO. The stock trades about -0.14 of its potential returns per unit of risk. The Nanjing OLO Home is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 651.00 in Nanjing OLO Home on October 22, 2024 and sell it today you would lose (44.00) from holding Nanjing OLO Home or give up 6.76% 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. Nanjing OLO Home
Performance |
| Timeline |
| CITIC Guoan Information |
| Nanjing OLO Home |
CITIC Guoan and Nanjing OLO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Nanjing OLO
The main advantage of trading using opposite CITIC Guoan and Nanjing OLO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Nanjing OLO 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 Nanjing OLO will offset losses from the drop in Nanjing OLO's long position.| CITIC Guoan vs. Anhui Shiny Electronic | CITIC Guoan vs. Shenzhen Clou Electronics | CITIC Guoan vs. Xinya Electronic Co | CITIC Guoan vs. Sihui Fuji Electronics |
| Nanjing OLO vs. CITIC Guoan Information | Nanjing OLO vs. Beijing Mainstreets Investment | Nanjing OLO vs. ZJBC Information Technology | Nanjing OLO vs. Nanjing Canatal Data |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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