Correlation Between Guilin Seamild and CITIC Guoan
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By analyzing existing cross correlation between Guilin Seamild Foods and CITIC Guoan Information, you can compare the effects of market volatilities on Guilin Seamild 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 Guilin Seamild with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guilin Seamild and CITIC Guoan.
Diversification Opportunities for Guilin Seamild and CITIC Guoan
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Guilin and CITIC is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding Guilin Seamild Foods 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 Guilin Seamild 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 Guilin Seamild Foods 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 Guilin Seamild i.e., Guilin Seamild and CITIC Guoan go up and down completely randomly.
Pair Corralation between Guilin Seamild and CITIC Guoan
Assuming the 90 days trading horizon Guilin Seamild Foods is expected to generate 0.97 times more return on investment than CITIC Guoan. However, Guilin Seamild Foods is 1.03 times less risky than CITIC Guoan. It trades about 0.02 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.02 per unit of risk. If you would invest 1,360 in Guilin Seamild Foods on October 16, 2024 and sell it today you would earn a total of 167.00 from holding Guilin Seamild Foods or generate 12.28% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guilin Seamild Foods vs. CITIC Guoan Information
Performance |
| Timeline |
| Guilin Seamild Foods |
| CITIC Guoan Information |
Guilin Seamild and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guilin Seamild and CITIC Guoan
The main advantage of trading using opposite Guilin Seamild and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guilin Seamild 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.| Guilin Seamild vs. Zoy Home Furnishing | Guilin Seamild vs. GUOMAI Culture Media | Guilin Seamild vs. Guangdong Jinma Entertainment | Guilin Seamild vs. Arrow Home Group |
| 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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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