Correlation Between Wintao Communications and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Wintao Communications Co and Citic Guoan Wine, you can compare the effects of market volatilities on Wintao Communications 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 Wintao Communications with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wintao Communications and Citic Guoan.
Diversification Opportunities for Wintao Communications and Citic Guoan
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Wintao and Citic is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Wintao Communications Co 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 Wintao Communications 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 Wintao Communications Co 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 Wintao Communications i.e., Wintao Communications and Citic Guoan go up and down completely randomly.
Pair Corralation between Wintao Communications and Citic Guoan
Assuming the 90 days trading horizon Wintao Communications is expected to generate 2.56 times less return on investment than Citic Guoan. In addition to that, Wintao Communications is 1.07 times more volatile than Citic Guoan Wine. It trades about 0.02 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.05 per unit of volatility. If you would invest 531.00 in Citic Guoan Wine on September 19, 2024 and sell it today you would earn a total of 74.00 from holding Citic Guoan Wine or generate 13.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wintao Communications Co vs. Citic Guoan Wine
Performance |
| Timeline |
| Wintao Communications |
| Citic Guoan Wine |
Wintao Communications and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wintao Communications and Citic Guoan
The main advantage of trading using opposite Wintao Communications and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wintao Communications 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.| Wintao Communications vs. Industrial and Commercial | Wintao Communications vs. China Construction Bank | Wintao Communications vs. Agricultural Bank of | Wintao Communications vs. Bank of China |
| Citic Guoan vs. Xinjiang Beixin RoadBridge | Citic Guoan vs. Anhui Transport Consulting | Citic Guoan vs. Wintao Communications Co | Citic Guoan vs. Longjian Road Bridge |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
Other Complementary Tools
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. |