Correlation Between Ciwen Media and CITIC Guoan
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By analyzing existing cross correlation between Ciwen Media Co and CITIC Guoan Information, you can compare the effects of market volatilities on Ciwen Media 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 Ciwen Media with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Ciwen Media and CITIC Guoan.
Diversification Opportunities for Ciwen Media and CITIC Guoan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Ciwen and CITIC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Ciwen Media Co 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 Ciwen Media 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 Ciwen Media Co 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 Ciwen Media i.e., Ciwen Media and CITIC Guoan go up and down completely randomly.
Pair Corralation between Ciwen Media and CITIC Guoan
Assuming the 90 days trading horizon Ciwen Media is expected to generate 1.12 times less return on investment than CITIC Guoan. In addition to that, Ciwen Media is 1.58 times more volatile than CITIC Guoan Information. It trades about 0.01 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.02 per unit of volatility. If you would invest 263.00 in CITIC Guoan Information on October 16, 2024 and sell it today you would earn a total of 9.00 from holding CITIC Guoan Information or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Ciwen Media Co vs. CITIC Guoan Information
Performance |
| Timeline |
| Ciwen Media |
| CITIC Guoan Information |
Ciwen Media and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Ciwen Media and CITIC Guoan
The main advantage of trading using opposite Ciwen Media and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Ciwen Media 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.| Ciwen Media vs. Jiangxi Hengda Hi Tech | Ciwen Media vs. Guangdong Jingyi Metal | Ciwen Media vs. Runjian Communication Co | Ciwen Media vs. Anhui Jinhe Industrial |
| CITIC Guoan vs. Runjian Communication Co | CITIC Guoan vs. FSPG Hi Tech Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology | CITIC Guoan vs. Tianjin Hi Tech Development |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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