Correlation Between Citic Guoan and Zangge Holding
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Zangge Holding Co, you can compare the effects of market volatilities on Citic Guoan and Zangge Holding 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 Citic Guoan with a short position of Zangge Holding. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Zangge Holding.
Diversification Opportunities for Citic Guoan and Zangge Holding
0.48 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Zangge is 0.48. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Zangge Holding Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zangge Holding and Citic Guoan 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 Citic Guoan Wine are associated (or correlated) with Zangge Holding. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zangge Holding has no effect on the direction of Citic Guoan i.e., Citic Guoan and Zangge Holding go up and down completely randomly.
Pair Corralation between Citic Guoan and Zangge Holding
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Zangge Holding. In addition to that, Citic Guoan is 1.48 times more volatile than Zangge Holding Co. It trades about -0.42 of its total potential returns per unit of risk. Zangge Holding Co is currently generating about 0.18 per unit of volatility. If you would invest 2,768 in Zangge Holding Co on October 14, 2024 and sell it today you would earn a total of 182.00 from holding Zangge Holding Co or generate 6.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citic Guoan Wine vs. Zangge Holding Co
Performance |
| Timeline |
| Citic Guoan Wine |
| Zangge Holding |
Citic Guoan and Zangge Holding Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Zangge Holding
The main advantage of trading using opposite Citic Guoan and Zangge Holding positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Zangge Holding 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 Zangge Holding will offset losses from the drop in Zangge Holding's long position.| Citic Guoan vs. Silkroad Visual Technology | Citic Guoan vs. Xinjiang Beixin RoadBridge | Citic Guoan vs. Road Environment Technology | Citic Guoan vs. Keda Clean Energy |
| Zangge Holding vs. Runjian Communication Co | Zangge Holding vs. Liaoning Dingjide Petrochemical | Zangge Holding vs. State Grid InformationCommunication | Zangge Holding vs. Miracll Chemicals Co |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |