Correlation Between Citic Guoan and Vontron Technology
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By analyzing existing cross correlation between Citic Guoan Wine and Vontron Technology Co, you can compare the effects of market volatilities on Citic Guoan and Vontron Technology 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 Vontron Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Vontron Technology.
Diversification Opportunities for Citic Guoan and Vontron Technology
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Vontron is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Vontron Technology Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vontron Technology 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 Vontron Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vontron Technology has no effect on the direction of Citic Guoan i.e., Citic Guoan and Vontron Technology go up and down completely randomly.
Pair Corralation between Citic Guoan and Vontron Technology
Assuming the 90 days trading horizon Citic Guoan is expected to generate 1.52 times less return on investment than Vontron Technology. In addition to that, Citic Guoan is 1.12 times more volatile than Vontron Technology Co. It trades about 0.08 of its total potential returns per unit of risk. Vontron Technology Co is currently generating about 0.13 per unit of volatility. If you would invest 904.00 in Vontron Technology Co on September 13, 2024 and sell it today you would earn a total of 44.00 from holding Vontron Technology Co or generate 4.87% 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. Vontron Technology Co
Performance |
| Timeline |
| Citic Guoan Wine |
| Vontron Technology |
Citic Guoan and Vontron Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Vontron Technology
The main advantage of trading using opposite Citic Guoan and Vontron Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Vontron Technology 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 Vontron Technology will offset losses from the drop in Vontron Technology'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 |
| Vontron Technology vs. Ming Yang Smart | Vontron Technology vs. 159681 | Vontron Technology vs. 159005 | Vontron Technology vs. Loctek Ergonomic Technology |
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 Portfolio Anywhere module to track or share privately all of your investments from the convenience of any device.
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