Correlation Between CITIC Guoan and Piotech
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By analyzing existing cross correlation between CITIC Guoan Information and Piotech Inc A, you can compare the effects of market volatilities on CITIC Guoan and Piotech 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 Piotech. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Piotech.
Diversification Opportunities for CITIC Guoan and Piotech
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Piotech is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Piotech Inc A in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Piotech Inc A 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 Piotech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Piotech Inc A has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Piotech go up and down completely randomly.
Pair Corralation between CITIC Guoan and Piotech
Assuming the 90 days trading horizon CITIC Guoan Information is expected to under-perform the Piotech. In addition to that, CITIC Guoan is 1.35 times more volatile than Piotech Inc A. It trades about -0.08 of its total potential returns per unit of risk. Piotech Inc A is currently generating about -0.07 per unit of volatility. If you would invest 14,670 in Piotech Inc A on November 3, 2024 and sell it today you would lose (405.00) from holding Piotech Inc A or give up 2.76% 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. Piotech Inc A
Performance |
| Timeline |
| CITIC Guoan Information |
| Piotech Inc A |
CITIC Guoan and Piotech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Piotech
The main advantage of trading using opposite CITIC Guoan and Piotech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Piotech 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 Piotech will offset losses from the drop in Piotech's long position.| CITIC Guoan vs. CIMC Vehicles Co | CITIC Guoan vs. Dongfeng Automobile Co | CITIC Guoan vs. Zhejiang Qianjiang Motorcycle | CITIC Guoan vs. Aier Eye Hospital |
| Piotech vs. Tongyu Communication | Piotech vs. Innovative Medical Management | Piotech vs. TianJin 712 Communication | Piotech vs. Dingli Communications Corp |
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 Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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