Correlation Between Citic Guoan and Shenzhen Topway
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By analyzing existing cross correlation between Citic Guoan Wine and Shenzhen Topway Video, you can compare the effects of market volatilities on Citic Guoan and Shenzhen Topway 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 Shenzhen Topway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Shenzhen Topway.
Diversification Opportunities for Citic Guoan and Shenzhen Topway
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Shenzhen is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Shenzhen Topway Video in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Topway Video 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 Shenzhen Topway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Topway Video has no effect on the direction of Citic Guoan i.e., Citic Guoan and Shenzhen Topway go up and down completely randomly.
Pair Corralation between Citic Guoan and Shenzhen Topway
Assuming the 90 days trading horizon Citic Guoan is expected to generate 1.41 times less return on investment than Shenzhen Topway. But when comparing it to its historical volatility, Citic Guoan Wine is 1.17 times less risky than Shenzhen Topway. It trades about 0.13 of its potential returns per unit of risk. Shenzhen Topway Video is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 728.00 in Shenzhen Topway Video on August 30, 2024 and sell it today you would earn a total of 252.00 from holding Shenzhen Topway Video or generate 34.62% 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. Shenzhen Topway Video
Performance |
| Timeline |
| Citic Guoan Wine |
| Shenzhen Topway Video |
Citic Guoan and Shenzhen Topway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Shenzhen Topway
The main advantage of trading using opposite Citic Guoan and Shenzhen Topway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Shenzhen Topway 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 Shenzhen Topway will offset losses from the drop in Shenzhen Topway's long position.| Citic Guoan vs. Shuhua Sports Co | Citic Guoan vs. Everdisplay Optronics Shanghai | Citic Guoan vs. Xiandai Investment Co | Citic Guoan vs. Jiangsu Financial Leasing |
| Shenzhen Topway vs. Zoje Resources Investment | Shenzhen Topway vs. Wuhan Yangtze Communication | Shenzhen Topway vs. Allwin Telecommunication Co | Shenzhen Topway vs. Metro Investment Development |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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