Correlation Between Citic Guoan and Shenyang Huitian
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By analyzing existing cross correlation between Citic Guoan Wine and Shenyang Huitian Thermal, you can compare the effects of market volatilities on Citic Guoan and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Shenyang Huitian.
Diversification Opportunities for Citic Guoan and Shenyang Huitian
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Shenyang is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of Citic Guoan i.e., Citic Guoan and Shenyang Huitian go up and down completely randomly.
Pair Corralation between Citic Guoan and Shenyang Huitian
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.83 times more return on investment than Shenyang Huitian. However, Citic Guoan Wine is 1.21 times less risky than Shenyang Huitian. It trades about 0.12 of its potential returns per unit of risk. Shenyang Huitian Thermal is currently generating about 0.06 per unit of risk. If you would invest 624.00 in Citic Guoan Wine on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Citic Guoan Wine or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Shenyang Huitian Thermal
Performance |
| Timeline |
| Citic Guoan Wine |
| Shenyang Huitian Thermal |
Citic Guoan and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Shenyang Huitian
The main advantage of trading using opposite Citic Guoan and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| Citic Guoan vs. China Life Insurance | Citic Guoan vs. Cinda Securities Co | Citic Guoan vs. Piotech Inc A | Citic Guoan vs. Dongxing Sec Co |
| Shenyang Huitian vs. Agricultural Bank of | Shenyang Huitian vs. Industrial and Commercial | Shenyang Huitian vs. Bank of China | Shenyang Huitian vs. PetroChina Co Ltd |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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