Correlation Between Zhejiang Qianjiang and CITIC Guoan
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By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and CITIC Guoan Information, you can compare the effects of market volatilities on Zhejiang Qianjiang and CITIC Guoan 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 Zhejiang Qianjiang with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and CITIC Guoan.
Diversification Opportunities for Zhejiang Qianjiang and CITIC Guoan
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zhejiang and CITIC is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Zhejiang Qianjiang i.e., Zhejiang Qianjiang and CITIC Guoan go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and CITIC Guoan
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to generate 0.64 times more return on investment than CITIC Guoan. However, Zhejiang Qianjiang Motorcycle is 1.56 times less risky than CITIC Guoan. It trades about -0.21 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.2 per unit of risk. If you would invest 1,870 in Zhejiang Qianjiang Motorcycle on September 12, 2024 and sell it today you would lose (162.00) from holding Zhejiang Qianjiang Motorcycle or give up 8.66% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. CITIC Guoan Information
Performance |
| Timeline |
| Zhejiang Qianjiang |
| CITIC Guoan Information |
Zhejiang Qianjiang and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang Qianjiang and CITIC Guoan
The main advantage of trading using opposite Zhejiang Qianjiang and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Zhejiang Qianjiang vs. Lutian Machinery Co | Zhejiang Qianjiang vs. PetroChina Co Ltd | Zhejiang Qianjiang vs. Bank of China | Zhejiang Qianjiang vs. Gansu Jiu Steel |
| CITIC Guoan vs. Kweichow Moutai Co | CITIC Guoan vs. Shenzhen Mindray Bio Medical | CITIC Guoan vs. G bits Network Technology | CITIC Guoan vs. Beijing Roborock 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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