Correlation Between By Health and Citic Guoan
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By analyzing existing cross correlation between By health and Citic Guoan Wine, you can compare the effects of market volatilities on By Health 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 By Health with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of By Health and Citic Guoan.
Diversification Opportunities for By Health and Citic Guoan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between 300146 and Citic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding By health 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 By Health 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 By health 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 By Health i.e., By Health and Citic Guoan go up and down completely randomly.
Pair Corralation between By Health and Citic Guoan
Assuming the 90 days trading horizon By health is expected to under-perform the Citic Guoan. But the stock apears to be less risky and, when comparing its historical volatility, By health is 1.19 times less risky than Citic Guoan. The stock trades about -0.05 of its potential returns per unit of risk. The Citic Guoan Wine is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 760.00 in Citic Guoan Wine on November 19, 2024 and sell it today you would lose (245.00) from holding Citic Guoan Wine or give up 32.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
By health vs. Citic Guoan Wine
Performance |
| Timeline |
| By health |
| Citic Guoan Wine |
By Health and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with By Health and Citic Guoan
The main advantage of trading using opposite By Health and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if By Health 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.| By Health vs. Jiangxi Lianchuang Opto electronic | By Health vs. Anhui Transport Consulting | By Health vs. Techshine Electronics Co | By Health vs. Zhonghang Electronic Measuring |
| Citic Guoan vs. iSoftStone Information Technology | Citic Guoan vs. INKON Life Technology | Citic Guoan vs. Linewell Software Co | Citic Guoan vs. Guangzhou KingTeller 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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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