Correlation Between Hubei Yingtong and China Citic
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By analyzing existing cross correlation between Hubei Yingtong Telecommunication and China Citic Bank, you can compare the effects of market volatilities on Hubei Yingtong 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 Hubei Yingtong with a short position of China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Yingtong and China Citic.
Diversification Opportunities for Hubei Yingtong and China Citic
0.05 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Hubei and China is 0.05. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Yingtong Telecommunicati 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 Hubei Yingtong 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 Hubei Yingtong Telecommunication 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 Hubei Yingtong i.e., Hubei Yingtong and China Citic go up and down completely randomly.
Pair Corralation between Hubei Yingtong and China Citic
Assuming the 90 days trading horizon Hubei Yingtong is expected to generate 1.23 times less return on investment than China Citic. In addition to that, Hubei Yingtong is 2.22 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 480.00 in China Citic Bank on October 16, 2024 and sell it today you would earn a total of 183.00 from holding China Citic Bank or generate 38.13% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Yingtong Telecommunicati vs. China Citic Bank
Performance |
| Timeline |
| Hubei Yingtong Telec |
| China Citic Bank |
Hubei Yingtong and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Yingtong and China Citic
The main advantage of trading using opposite Hubei Yingtong and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Yingtong 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.| Hubei Yingtong vs. Shanghai Shibei Hi Tech | Hubei Yingtong vs. State Grid InformationCommunication | Hubei Yingtong vs. Dezhan HealthCare Co | Hubei Yingtong vs. Jonjee Hi tech Industrial |
| China Citic vs. Sunwave Communications Co | China Citic vs. Hubei Yingtong Telecommunication | China Citic vs. Nanjing Putian Telecommunications | China Citic vs. Bank of Communications |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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