Correlation Between Wonders Information and CITIC Guoan
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By analyzing existing cross correlation between Wonders Information and CITIC Guoan Information, you can compare the effects of market volatilities on Wonders 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 Wonders Information with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wonders Information and CITIC Guoan.
Diversification Opportunities for Wonders Information and CITIC Guoan
0.67 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Wonders and CITIC is 0.67. Overlapping area represents the amount of risk that can be diversified away by holding Wonders Information 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 Wonders 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 Wonders Information 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 Wonders Information i.e., Wonders Information and CITIC Guoan go up and down completely randomly.
Pair Corralation between Wonders Information and CITIC Guoan
Assuming the 90 days trading horizon Wonders Information is expected to under-perform the CITIC Guoan. In addition to that, Wonders Information is 1.18 times more volatile than CITIC Guoan Information. It trades about -0.25 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.21 per unit of volatility. If you would invest 339.00 in CITIC Guoan Information on October 18, 2024 and sell it today you would lose (42.00) from holding CITIC Guoan Information or give up 12.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wonders Information vs. CITIC Guoan Information
Performance |
| Timeline |
| Wonders Information |
| CITIC Guoan Information |
Wonders Information and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wonders Information and CITIC Guoan
The main advantage of trading using opposite Wonders Information and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wonders 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.| Wonders Information vs. Zhongrun Resources Investment | Wonders Information vs. Kunwu Jiuding Investment | Wonders Information vs. Ningbo Ligong Online | Wonders Information vs. Vanfund Urban Investment |
| CITIC Guoan vs. Marssenger Kitchenware Co | CITIC Guoan vs. Cangzhou Mingzhu Plastic | CITIC Guoan vs. BTG Hotels Group | CITIC Guoan vs. Ningbo Tip Rubber |
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 Risk-Return Analysis module to view associations between returns expected from investment and the risk you assume.
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