Correlation Between Malion New and Citic Guoan
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By analyzing existing cross correlation between Malion New Materials and Citic Guoan Wine, you can compare the effects of market volatilities on Malion New 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 Malion New with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Malion New and Citic Guoan.
Diversification Opportunities for Malion New and Citic Guoan
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Malion and Citic is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Malion New Materials 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 Malion New 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 Malion New Materials 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 Malion New i.e., Malion New and Citic Guoan go up and down completely randomly.
Pair Corralation between Malion New and Citic Guoan
Assuming the 90 days trading horizon Malion New is expected to generate 3.1 times less return on investment than Citic Guoan. In addition to that, Malion New is 1.3 times more volatile than Citic Guoan Wine. It trades about 0.03 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.1 per unit of volatility. If you would invest 577.00 in Citic Guoan Wine on August 30, 2024 and sell it today you would earn a total of 34.00 from holding Citic Guoan Wine or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Malion New Materials vs. Citic Guoan Wine
Performance |
| Timeline |
| Malion New Materials |
| Citic Guoan Wine |
Malion New and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Malion New and Citic Guoan
The main advantage of trading using opposite Malion New and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Malion New 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.| Malion New vs. Zijin Mining Group | Malion New vs. Wanhua Chemical Group | Malion New vs. Baoshan Iron Steel | Malion New vs. Shandong Gold Mining |
| Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Industrial and Commercial | Citic Guoan vs. Bank of China | Citic Guoan vs. China Construction Bank |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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