Correlation Between King Strong and Citic Guoan
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By analyzing existing cross correlation between King Strong New Material and Citic Guoan Wine, you can compare the effects of market volatilities on King Strong 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 King Strong with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of King Strong and Citic Guoan.
Diversification Opportunities for King Strong and Citic Guoan
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between King and Citic is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding King Strong New Material 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 King Strong 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 King Strong New Material 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 King Strong i.e., King Strong and Citic Guoan go up and down completely randomly.
Pair Corralation between King Strong and Citic Guoan
Assuming the 90 days trading horizon King Strong New Material is expected to generate 1.46 times more return on investment than Citic Guoan. However, King Strong is 1.46 times more volatile than Citic Guoan Wine. It trades about 0.05 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.02 per unit of risk. If you would invest 2,091 in King Strong New Material on August 29, 2024 and sell it today you would earn a total of 51.00 from holding King Strong New Material or generate 2.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
King Strong New Material vs. Citic Guoan Wine
Performance |
| Timeline |
| King Strong New |
| Citic Guoan Wine |
King Strong and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with King Strong and Citic Guoan
The main advantage of trading using opposite King Strong and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if King Strong 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.| King Strong vs. Rising Nonferrous Metals | King Strong vs. Qinghaihuading Industrial Co | King Strong vs. Western Metal Materials | King Strong vs. Shenzhen Zhongzhuang Construction |
| Citic Guoan vs. Rising Nonferrous Metals | Citic Guoan vs. Shanghai Yanpu Metal | Citic Guoan vs. Glodon Software Co | Citic Guoan vs. ZYF Lopsking Aluminum |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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