Correlation Between Citic Guoan and Suzhou SLAC
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Suzhou SLAC Precision, you can compare the effects of market volatilities on Citic Guoan and Suzhou SLAC 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 Suzhou SLAC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Suzhou SLAC.
Diversification Opportunities for Citic Guoan and Suzhou SLAC
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and Suzhou is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Suzhou SLAC Precision in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou SLAC Precision 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 Suzhou SLAC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou SLAC Precision has no effect on the direction of Citic Guoan i.e., Citic Guoan and Suzhou SLAC go up and down completely randomly.
Pair Corralation between Citic Guoan and Suzhou SLAC
Assuming the 90 days trading horizon Citic Guoan is expected to generate 4.32 times less return on investment than Suzhou SLAC. But when comparing it to its historical volatility, Citic Guoan Wine is 2.97 times less risky than Suzhou SLAC. It trades about 0.08 of its potential returns per unit of risk. Suzhou SLAC Precision is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 1,098 in Suzhou SLAC Precision on September 13, 2024 and sell it today you would earn a total of 130.00 from holding Suzhou SLAC Precision or generate 11.84% 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. Suzhou SLAC Precision
Performance |
| Timeline |
| Citic Guoan Wine |
| Suzhou SLAC Precision |
Citic Guoan and Suzhou SLAC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Suzhou SLAC
The main advantage of trading using opposite Citic Guoan and Suzhou SLAC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Suzhou SLAC 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 Suzhou SLAC will offset losses from the drop in Suzhou SLAC's long position.| Citic Guoan vs. China Life Insurance | Citic Guoan vs. Cinda Securities Co | Citic Guoan vs. Piotech Inc A | Citic Guoan vs. Dongxing Sec Co |
| Suzhou SLAC vs. StarPower Semiconductor | Suzhou SLAC vs. Dongguan Aohai Technology | Suzhou SLAC vs. Olympic Circuit Technology | Suzhou SLAC vs. Ningbo Ligong Online |
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.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance |