Correlation Between Citic Guoan and Taiji Computer
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By analyzing existing cross correlation between Citic Guoan Wine and Taiji Computer Corp, you can compare the effects of market volatilities on Citic Guoan and Taiji Computer 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 Taiji Computer. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Taiji Computer.
Diversification Opportunities for Citic Guoan and Taiji Computer
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and Taiji is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Taiji Computer Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Taiji Computer Corp 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 Taiji Computer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Taiji Computer Corp has no effect on the direction of Citic Guoan i.e., Citic Guoan and Taiji Computer go up and down completely randomly.
Pair Corralation between Citic Guoan and Taiji Computer
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Taiji Computer. But the stock apears to be less risky and, when comparing its historical volatility, Citic Guoan Wine is 1.04 times less risky than Taiji Computer. The stock trades about -0.02 of its potential returns per unit of risk. The Taiji Computer Corp is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 2,317 in Taiji Computer Corp on October 14, 2024 and sell it today you would lose (201.00) from holding Taiji Computer Corp or give up 8.68% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Taiji Computer Corp
Performance |
| Timeline |
| Citic Guoan Wine |
| Taiji Computer Corp |
Citic Guoan and Taiji Computer Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Taiji Computer
The main advantage of trading using opposite Citic Guoan and Taiji Computer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Taiji Computer 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 Taiji Computer will offset losses from the drop in Taiji Computer's long position.| Citic Guoan vs. Shannon Semiconductor Technology | Citic Guoan vs. Sinocat Environmental Technology | Citic Guoan vs. Anyang Iron Steel | Citic Guoan vs. Qiaoyin Environmental Tech |
| Taiji Computer vs. Jiangsu Jinling Sports | Taiji Computer vs. Nanxing Furniture Machinery | Taiji Computer vs. Dazhong Transportation Group | Taiji Computer vs. Shaanxi Construction Machinery |
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 Stocks Directory module to find actively traded stocks across global markets.
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