Correlation Between Zoje Resources and Citic Guoan
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By analyzing existing cross correlation between Zoje Resources Investment and Citic Guoan Wine, you can compare the effects of market volatilities on Zoje Resources 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 Zoje Resources with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zoje Resources and Citic Guoan.
Diversification Opportunities for Zoje Resources and Citic Guoan
0.52 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Zoje and Citic is 0.52. Overlapping area represents the amount of risk that can be diversified away by holding Zoje Resources Investment 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 Zoje Resources 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 Zoje Resources Investment 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 Zoje Resources i.e., Zoje Resources and Citic Guoan go up and down completely randomly.
Pair Corralation between Zoje Resources and Citic Guoan
Assuming the 90 days trading horizon Zoje Resources Investment is expected to generate 1.33 times more return on investment than Citic Guoan. However, Zoje Resources is 1.33 times more volatile than Citic Guoan Wine. It trades about 0.1 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.04 per unit of risk. If you would invest 166.00 in Zoje Resources Investment on October 25, 2024 and sell it today you would earn a total of 82.00 from holding Zoje Resources Investment or generate 49.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zoje Resources Investment vs. Citic Guoan Wine
Performance |
| Timeline |
| Zoje Resources Investment |
| Citic Guoan Wine |
Zoje Resources and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zoje Resources and Citic Guoan
The main advantage of trading using opposite Zoje Resources and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zoje Resources 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.| Zoje Resources vs. Guangzhou Restaurants Group | Zoje Resources vs. Wuhan Hvsen Biotechnology | Zoje Resources vs. Dawning Information Industry | Zoje Resources vs. Liaoning Chengda Biotechnology |
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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 Fundamental Analysis module to view fundamental data based on most recent published financial statements.
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