Correlation Between Citic Guoan and Beijing Venustech
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By analyzing existing cross correlation between Citic Guoan Wine and Beijing Venustech, you can compare the effects of market volatilities on Citic Guoan and Beijing Venustech 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 Beijing Venustech. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Beijing Venustech.
Diversification Opportunities for Citic Guoan and Beijing Venustech
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and Beijing is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Beijing Venustech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Venustech 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 Beijing Venustech. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Venustech has no effect on the direction of Citic Guoan i.e., Citic Guoan and Beijing Venustech go up and down completely randomly.
Pair Corralation between Citic Guoan and Beijing Venustech
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.76 times more return on investment than Beijing Venustech. However, Citic Guoan Wine is 1.32 times less risky than Beijing Venustech. It trades about 0.01 of its potential returns per unit of risk. Beijing Venustech is currently generating about -0.27 per unit of risk. If you would invest 628.00 in Citic Guoan Wine on September 12, 2024 and sell it today you would earn a total of 0.00 from holding Citic Guoan Wine or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Beijing Venustech
Performance |
| Timeline |
| Citic Guoan Wine |
| Beijing Venustech |
Citic Guoan and Beijing Venustech Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Beijing Venustech
The main advantage of trading using opposite Citic Guoan and Beijing Venustech positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Beijing Venustech 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 Beijing Venustech will offset losses from the drop in Beijing Venustech's long position.| Citic Guoan vs. China Petroleum Chemical | Citic Guoan vs. PetroChina Co Ltd | Citic Guoan vs. China State Construction | Citic Guoan vs. China Railway Group |
| Beijing Venustech vs. Xiangyang Automobile Bearing | Beijing Venustech vs. ButOne Information Corp | Beijing Venustech vs. Haima Automobile Group | Beijing Venustech vs. Ningbo Fangzheng Automobile |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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