Correlation Between Citic Guoan and Gansu Huangtai
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By analyzing existing cross correlation between Citic Guoan Wine and Gansu Huangtai Wine marketing, you can compare the effects of market volatilities on Citic Guoan and Gansu Huangtai 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 Gansu Huangtai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Gansu Huangtai.
Diversification Opportunities for Citic Guoan and Gansu Huangtai
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Gansu is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Gansu Huangtai Wine marketing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gansu Huangtai Wine 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 Gansu Huangtai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gansu Huangtai Wine has no effect on the direction of Citic Guoan i.e., Citic Guoan and Gansu Huangtai go up and down completely randomly.
Pair Corralation between Citic Guoan and Gansu Huangtai
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.73 times more return on investment than Gansu Huangtai. However, Citic Guoan Wine is 1.36 times less risky than Gansu Huangtai. It trades about 0.09 of its potential returns per unit of risk. Gansu Huangtai Wine marketing is currently generating about 0.03 per unit of risk. If you would invest 529.00 in Citic Guoan Wine on August 28, 2024 and sell it today you would earn a total of 56.00 from holding Citic Guoan Wine or generate 10.59% 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. Gansu Huangtai Wine marketing
Performance |
| Timeline |
| Citic Guoan Wine |
| Gansu Huangtai Wine |
Citic Guoan and Gansu Huangtai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Gansu Huangtai
The main advantage of trading using opposite Citic Guoan and Gansu Huangtai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Gansu Huangtai 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 Gansu Huangtai will offset losses from the drop in Gansu Huangtai's long position.| Citic Guoan vs. BYD Co Ltd | Citic Guoan vs. China Mobile Limited | Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Industrial and Commercial |
| Gansu Huangtai vs. Industrial and Commercial | Gansu Huangtai vs. China Construction Bank | Gansu Huangtai vs. Bank of China | Gansu Huangtai vs. Agricultural Bank of |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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