Correlation Between Citic Guoan and Wintao Communications
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By analyzing existing cross correlation between Citic Guoan Wine and Wintao Communications Co, you can compare the effects of market volatilities on Citic Guoan and Wintao Communications 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 Wintao Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Wintao Communications.
Diversification Opportunities for Citic Guoan and Wintao Communications
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and Wintao is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Wintao Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Wintao Communications 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 Wintao Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Wintao Communications has no effect on the direction of Citic Guoan i.e., Citic Guoan and Wintao Communications go up and down completely randomly.
Pair Corralation between Citic Guoan and Wintao Communications
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.64 times more return on investment than Wintao Communications. However, Citic Guoan Wine is 1.57 times less risky than Wintao Communications. It trades about -0.1 of its potential returns per unit of risk. Wintao Communications Co is currently generating about -0.09 per unit of risk. If you would invest 526.00 in Citic Guoan Wine on October 29, 2024 and sell it today you would lose (25.00) from holding Citic Guoan Wine or give up 4.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citic Guoan Wine vs. Wintao Communications Co
Performance |
| Timeline |
| Citic Guoan Wine |
| Wintao Communications |
Citic Guoan and Wintao Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Wintao Communications
The main advantage of trading using opposite Citic Guoan and Wintao Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Wintao Communications 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 Wintao Communications will offset losses from the drop in Wintao Communications' long position.| Citic Guoan vs. Zhejiang Publishing Media | Citic Guoan vs. Zhejiang Yongjin Metal | Citic Guoan vs. ZYF Lopsking Aluminum | Citic Guoan vs. Shanghai Action Education |
| Wintao Communications vs. Chengdu Kanghua Biological | Wintao Communications vs. Aluminum Corp of | Wintao Communications vs. COL Digital Publishing | Wintao Communications vs. Shaanxi Meineng Clean |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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