Correlation Between Hubei Dinglong and CITIC Guoan
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By analyzing existing cross correlation between Hubei Dinglong Chemical and CITIC Guoan Information, you can compare the effects of market volatilities on Hubei Dinglong 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 Hubei Dinglong with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hubei Dinglong and CITIC Guoan.
Diversification Opportunities for Hubei Dinglong and CITIC Guoan
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Hubei and CITIC is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding Hubei Dinglong Chemical 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 Hubei Dinglong 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 Dinglong Chemical 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 Hubei Dinglong i.e., Hubei Dinglong and CITIC Guoan go up and down completely randomly.
Pair Corralation between Hubei Dinglong and CITIC Guoan
Assuming the 90 days trading horizon Hubei Dinglong Chemical is expected to generate 0.85 times more return on investment than CITIC Guoan. However, Hubei Dinglong Chemical is 1.18 times less risky than CITIC Guoan. It trades about -0.19 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.2 per unit of risk. If you would invest 3,065 in Hubei Dinglong Chemical on September 12, 2024 and sell it today you would lose (311.00) from holding Hubei Dinglong Chemical or give up 10.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hubei Dinglong Chemical vs. CITIC Guoan Information
Performance |
| Timeline |
| Hubei Dinglong Chemical |
| CITIC Guoan Information |
Hubei Dinglong and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hubei Dinglong and CITIC Guoan
The main advantage of trading using opposite Hubei Dinglong and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hubei Dinglong 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.| Hubei Dinglong vs. Zijin Mining Group | Hubei Dinglong vs. Wanhua Chemical Group | Hubei Dinglong vs. Baoshan Iron Steel | Hubei Dinglong vs. Rongsheng Petrochemical Co |
| CITIC Guoan vs. Kweichow Moutai Co | CITIC Guoan vs. Shenzhen Mindray Bio Medical | CITIC Guoan vs. G bits Network Technology | CITIC Guoan vs. Beijing Roborock Technology |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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