Correlation Between CITIC Guoan and Yonyou Auto
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By analyzing existing cross correlation between CITIC Guoan Information and Yonyou Auto Information, you can compare the effects of market volatilities on CITIC Guoan and Yonyou Auto 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 Yonyou Auto. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Yonyou Auto.
Diversification Opportunities for CITIC Guoan and Yonyou Auto
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Yonyou is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Yonyou Auto Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yonyou Auto Information 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 Yonyou Auto. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yonyou Auto Information has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Yonyou Auto go up and down completely randomly.
Pair Corralation between CITIC Guoan and Yonyou Auto
Assuming the 90 days trading horizon CITIC Guoan is expected to generate 1.67 times less return on investment than Yonyou Auto. In addition to that, CITIC Guoan is 1.63 times more volatile than Yonyou Auto Information. It trades about 0.06 of its total potential returns per unit of risk. Yonyou Auto Information is currently generating about 0.17 per unit of volatility. If you would invest 1,833 in Yonyou Auto Information on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Yonyou Auto Information or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Yonyou Auto Information
Performance |
| Timeline |
| CITIC Guoan Information |
| Yonyou Auto Information |
CITIC Guoan and Yonyou Auto Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Yonyou Auto
The main advantage of trading using opposite CITIC Guoan and Yonyou Auto positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Yonyou Auto 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 Yonyou Auto will offset losses from the drop in Yonyou Auto's long position.| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic Technology |
| Yonyou Auto vs. Agricultural Bank of | Yonyou Auto vs. China Construction Bank | Yonyou Auto vs. Postal Savings Bank | Yonyou Auto vs. Bank of Communications |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
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