Correlation Between Vontron Technology and China Citic
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By analyzing existing cross correlation between Vontron Technology Co and China Citic Bank, you can compare the effects of market volatilities on Vontron Technology and China Citic 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 Vontron Technology with a short position of China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vontron Technology and China Citic.
Diversification Opportunities for Vontron Technology and China Citic
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vontron and China is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Vontron Technology Co and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank and Vontron Technology 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 Vontron Technology Co are associated (or correlated) with China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of Vontron Technology i.e., Vontron Technology and China Citic go up and down completely randomly.
Pair Corralation between Vontron Technology and China Citic
Assuming the 90 days trading horizon Vontron Technology is expected to generate 2.67 times less return on investment than China Citic. In addition to that, Vontron Technology is 1.17 times more volatile than China Citic Bank. It trades about 0.02 of its total potential returns per unit of risk. China Citic Bank is currently generating about 0.05 per unit of volatility. If you would invest 541.00 in China Citic Bank on September 1, 2024 and sell it today you would earn a total of 138.00 from holding China Citic Bank or generate 25.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vontron Technology Co vs. China Citic Bank
Performance |
| Timeline |
| Vontron Technology |
| China Citic Bank |
Vontron Technology and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vontron Technology and China Citic
The main advantage of trading using opposite Vontron Technology and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vontron Technology position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic's long position.| Vontron Technology vs. Cultural Investment Holdings | Vontron Technology vs. Gome Telecom Equipment | Vontron Technology vs. Bus Online Co | Vontron Technology vs. Holitech Technology Co |
| China Citic vs. StarPower Semiconductor | China Citic vs. Yunnan Xiyi Industrial | China Citic vs. Nexchip Semiconductor Corp | China Citic vs. Tibet Huayu Mining |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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