Correlation Between YLZ Information and CITIC Guoan
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By analyzing existing cross correlation between YLZ Information Tech and CITIC Guoan Information, you can compare the effects of market volatilities on YLZ Information 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 YLZ Information with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of YLZ Information and CITIC Guoan.
Diversification Opportunities for YLZ Information and CITIC Guoan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between YLZ and CITIC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding YLZ Information Tech 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 YLZ Information 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 YLZ Information Tech 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 YLZ Information i.e., YLZ Information and CITIC Guoan go up and down completely randomly.
Pair Corralation between YLZ Information and CITIC Guoan
Assuming the 90 days trading horizon YLZ Information Tech is expected to under-perform the CITIC Guoan. In addition to that, YLZ Information is 1.56 times more volatile than CITIC Guoan Information. It trades about -0.03 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.08 per unit of volatility. If you would invest 235.00 in CITIC Guoan Information on September 5, 2024 and sell it today you would earn a total of 129.00 from holding CITIC Guoan Information or generate 54.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
YLZ Information Tech vs. CITIC Guoan Information
Performance |
| Timeline |
| YLZ Information Tech |
| CITIC Guoan Information |
YLZ Information and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with YLZ Information and CITIC Guoan
The main advantage of trading using opposite YLZ Information and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YLZ Information 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.| YLZ Information vs. BYD Co Ltd | YLZ Information vs. China Mobile Limited | YLZ Information vs. Agricultural Bank of | YLZ Information vs. Industrial and Commercial |
| CITIC Guoan vs. PetroChina Co Ltd | CITIC Guoan vs. China Mobile Limited | CITIC Guoan vs. CNOOC Limited | CITIC Guoan vs. Ping An Insurance |
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 Bond Analysis module to evaluate and analyze corporate bonds as a potential investment for your portfolios..
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