Correlation Between CITIC Guoan and Zhejiang Yongjin
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By analyzing existing cross correlation between CITIC Guoan Information and Zhejiang Yongjin Metal, you can compare the effects of market volatilities on CITIC Guoan and Zhejiang Yongjin 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 Zhejiang Yongjin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Zhejiang Yongjin.
Diversification Opportunities for CITIC Guoan and Zhejiang Yongjin
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITIC and Zhejiang is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Zhejiang Yongjin Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Yongjin 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 Zhejiang Yongjin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Yongjin Metal has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Zhejiang Yongjin go up and down completely randomly.
Pair Corralation between CITIC Guoan and Zhejiang Yongjin
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Zhejiang Yongjin. In addition to that, CITIC Guoan is 1.58 times more volatile than Zhejiang Yongjin Metal. It trades about -0.21 of its total potential returns per unit of risk. Zhejiang Yongjin Metal is currently generating about 0.02 per unit of volatility. If you would invest 1,855 in Zhejiang Yongjin Metal on October 23, 2024 and sell it today you would earn a total of 9.00 from holding Zhejiang Yongjin Metal or generate 0.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Zhejiang Yongjin Metal
Performance |
| Timeline |
| CITIC Guoan Information |
| Zhejiang Yongjin Metal |
CITIC Guoan and Zhejiang Yongjin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Zhejiang Yongjin
The main advantage of trading using opposite CITIC Guoan and Zhejiang Yongjin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Zhejiang Yongjin 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 Zhejiang Yongjin will offset losses from the drop in Zhejiang Yongjin'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 |
| Zhejiang Yongjin vs. Bangyan Technology Co | Zhejiang Yongjin vs. Uxi Unicomp Technology | Zhejiang Yongjin vs. Shenzhen SDG Information | Zhejiang Yongjin vs. Invengo Information 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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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