Correlation Between Gansu Huangtai and Citic Guoan
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By analyzing existing cross correlation between Gansu Huangtai Wine marketing and Citic Guoan Wine, you can compare the effects of market volatilities on Gansu Huangtai 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 Gansu Huangtai with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Gansu Huangtai and Citic Guoan.
Diversification Opportunities for Gansu Huangtai and Citic Guoan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Gansu and Citic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Gansu Huangtai Wine marketing and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine and Gansu Huangtai 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 Gansu Huangtai Wine marketing 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 Wine has no effect on the direction of Gansu Huangtai i.e., Gansu Huangtai and Citic Guoan go up and down completely randomly.
Pair Corralation between Gansu Huangtai and Citic Guoan
Assuming the 90 days trading horizon Gansu Huangtai Wine marketing is expected to generate 1.22 times more return on investment than Citic Guoan. However, Gansu Huangtai is 1.22 times more volatile than Citic Guoan Wine. It trades about 0.0 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.01 per unit of risk. If you would invest 1,742 in Gansu Huangtai Wine marketing on August 24, 2024 and sell it today you would lose (420.00) from holding Gansu Huangtai Wine marketing or give up 24.11% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Gansu Huangtai Wine marketing vs. Citic Guoan Wine
Performance |
| Timeline |
| Gansu Huangtai Wine |
| Citic Guoan Wine |
Gansu Huangtai and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Gansu Huangtai and Citic Guoan
The main advantage of trading using opposite Gansu Huangtai and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Gansu Huangtai 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.| Gansu Huangtai vs. Grinm Advanced Materials | Gansu Huangtai vs. Xinke Material | Gansu Huangtai vs. Jiangsu Financial Leasing | Gansu Huangtai vs. GRG Banking Equipment |
| Citic Guoan vs. Nancal Energy Saving Tech | Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Tongyu Communication | Citic Guoan vs. Nanjing Putian Telecommunications |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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