Correlation Between Citic Guoan and Gan Yuan
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By analyzing existing cross correlation between Citic Guoan Wine and Gan Yuan Foods, you can compare the effects of market volatilities on Citic Guoan and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Gan Yuan.
Diversification Opportunities for Citic Guoan and Gan Yuan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Gan is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan Foods 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of Citic Guoan i.e., Citic Guoan and Gan Yuan go up and down completely randomly.
Pair Corralation between Citic Guoan and Gan Yuan
Assuming the 90 days trading horizon Citic Guoan is expected to generate 1.91 times less return on investment than Gan Yuan. But when comparing it to its historical volatility, Citic Guoan Wine is 1.06 times less risky than Gan Yuan. It trades about 0.13 of its potential returns per unit of risk. Gan Yuan Foods is currently generating about 0.24 of returns per unit of risk over similar time horizon. If you would invest 5,164 in Gan Yuan Foods on August 30, 2024 and sell it today you would earn a total of 2,725 from holding Gan Yuan Foods or generate 52.77% 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. Gan Yuan Foods
Performance |
| Timeline |
| Citic Guoan Wine |
| Gan Yuan Foods |
Citic Guoan and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Gan Yuan
The main advantage of trading using opposite Citic Guoan and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
| Gan Yuan vs. JCHX Mining Management | Gan Yuan vs. Chengdu Spaceon Electronics | Gan Yuan vs. Western Metal Materials | Gan Yuan vs. Jiaozuo Wanfang Aluminum |
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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