Correlation Between Guangzhou Tinci and Citic Guoan
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By analyzing existing cross correlation between Guangzhou Tinci Materials and Citic Guoan Wine, you can compare the effects of market volatilities on Guangzhou Tinci 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 Guangzhou Tinci with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Tinci and Citic Guoan.
Diversification Opportunities for Guangzhou Tinci and Citic Guoan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Guangzhou and Citic is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Tinci Materials 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 Guangzhou Tinci 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 Guangzhou Tinci Materials 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 Guangzhou Tinci i.e., Guangzhou Tinci and Citic Guoan go up and down completely randomly.
Pair Corralation between Guangzhou Tinci and Citic Guoan
Assuming the 90 days trading horizon Guangzhou Tinci Materials is expected to under-perform the Citic Guoan. In addition to that, Guangzhou Tinci is 1.21 times more volatile than Citic Guoan Wine. It trades about -0.05 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.02 per unit of volatility. If you would invest 753.00 in Citic Guoan Wine on November 5, 2024 and sell it today you would lose (252.00) from holding Citic Guoan Wine or give up 33.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Tinci Materials vs. Citic Guoan Wine
Performance |
| Timeline |
| Guangzhou Tinci Materials |
| Citic Guoan Wine |
Guangzhou Tinci and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Tinci and Citic Guoan
The main advantage of trading using opposite Guangzhou Tinci and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Tinci 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.| Guangzhou Tinci vs. Tongyu Communication | Guangzhou Tinci vs. Sharetronic Data Technology | Guangzhou Tinci vs. Dawning Information Industry | Guangzhou Tinci vs. Eastern Communications Co |
| Citic Guoan vs. Qtone Education Group | Citic Guoan vs. Dongfeng Automobile Co | Citic Guoan vs. Jiangsu Xinri E Vehicle | Citic Guoan vs. Anhui Deli Household |
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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.
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