Correlation Between Shenzhen Bioeasy and CITIC Guoan
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By analyzing existing cross correlation between Shenzhen Bioeasy Biotechnology and CITIC Guoan Information, you can compare the effects of market volatilities on Shenzhen Bioeasy 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 Shenzhen Bioeasy with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Bioeasy and CITIC Guoan.
Diversification Opportunities for Shenzhen Bioeasy and CITIC Guoan
0.63 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shenzhen and CITIC is 0.63. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy 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 Shenzhen Bioeasy Biotechnology 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 Shenzhen Bioeasy i.e., Shenzhen Bioeasy and CITIC Guoan go up and down completely randomly.
Pair Corralation between Shenzhen Bioeasy and CITIC Guoan
Assuming the 90 days trading horizon Shenzhen Bioeasy Biotechnology is expected to under-perform the CITIC Guoan. In addition to that, Shenzhen Bioeasy is 1.49 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 0.02 per unit of volatility. If you would invest 263.00 in CITIC Guoan Information on October 16, 2024 and sell it today you would earn a total of 9.00 from holding CITIC Guoan Information or generate 3.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Bioeasy Biotechnology vs. CITIC Guoan Information
Performance |
| Timeline |
| Shenzhen Bioeasy Bio |
| CITIC Guoan Information |
Shenzhen Bioeasy and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Bioeasy and CITIC Guoan
The main advantage of trading using opposite Shenzhen Bioeasy and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Bioeasy 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.| Shenzhen Bioeasy vs. China Life Insurance | Shenzhen Bioeasy vs. Shanghai Jinfeng Wine | Shenzhen Bioeasy vs. Shanghai Yanpu Metal | Shenzhen Bioeasy vs. Guangdong Jingyi Metal |
| CITIC Guoan vs. 360 Security Technology | CITIC Guoan vs. Iat Automobile Technology | CITIC Guoan vs. Linewell Software Co | CITIC Guoan vs. Shanghai Ziyan Foods |
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 Stocks Directory module to find actively traded stocks across global markets.
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