Correlation Between Citic Guoan and Tianjin Ruixin
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By analyzing existing cross correlation between Citic Guoan Wine and Tianjin Ruixin Technology, you can compare the effects of market volatilities on Citic Guoan and Tianjin Ruixin 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 Tianjin Ruixin. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Tianjin Ruixin.
Diversification Opportunities for Citic Guoan and Tianjin Ruixin
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Tianjin is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Tianjin Ruixin Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Ruixin Technology 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 Tianjin Ruixin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Ruixin Technology has no effect on the direction of Citic Guoan i.e., Citic Guoan and Tianjin Ruixin go up and down completely randomly.
Pair Corralation between Citic Guoan and Tianjin Ruixin
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.66 times more return on investment than Tianjin Ruixin. However, Citic Guoan Wine is 1.51 times less risky than Tianjin Ruixin. It trades about -0.34 of its potential returns per unit of risk. Tianjin Ruixin Technology is currently generating about -0.23 per unit of risk. If you would invest 628.00 in Citic Guoan Wine on October 11, 2024 and sell it today you would lose (119.00) from holding Citic Guoan Wine or give up 18.95% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Tianjin Ruixin Technology
Performance |
| Timeline |
| Citic Guoan Wine |
| Tianjin Ruixin Technology |
Citic Guoan and Tianjin Ruixin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Tianjin Ruixin
The main advantage of trading using opposite Citic Guoan and Tianjin Ruixin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Tianjin Ruixin 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 Tianjin Ruixin will offset losses from the drop in Tianjin Ruixin's long position.| Citic Guoan vs. Keeson Technology Corp | Citic Guoan vs. Sinocat Environmental Technology | Citic Guoan vs. City Development Environment | Citic Guoan vs. Kuangda Technology Group |
| Tianjin Ruixin vs. Citic Guoan Wine | Tianjin Ruixin vs. GreenTech Environmental Co | Tianjin Ruixin vs. Luyin Investment Group | Tianjin Ruixin vs. Qiaoyin Environmental Tech |
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 Top Crypto Exchanges module to search and analyze digital assets across top global cryptocurrency exchanges.
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