Correlation Between Citic Guoan and Sublime China
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By analyzing existing cross correlation between Citic Guoan Wine and Sublime China Information, you can compare the effects of market volatilities on Citic Guoan and Sublime China 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 Sublime China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Sublime China.
Diversification Opportunities for Citic Guoan and Sublime China
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citic and Sublime is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Sublime China Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sublime China Information 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 Sublime China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sublime China Information has no effect on the direction of Citic Guoan i.e., Citic Guoan and Sublime China go up and down completely randomly.
Pair Corralation between Citic Guoan and Sublime China
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Sublime China. But the stock apears to be less risky and, when comparing its historical volatility, Citic Guoan Wine is 2.97 times less risky than Sublime China. The stock trades about -0.11 of its potential returns per unit of risk. The Sublime China Information is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 6,073 in Sublime China Information on November 3, 2024 and sell it today you would earn a total of 1,935 from holding Sublime China Information or generate 31.86% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Sublime China Information
Performance |
| Timeline |
| Citic Guoan Wine |
| Sublime China Information |
Citic Guoan and Sublime China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Sublime China
The main advantage of trading using opposite Citic Guoan and Sublime China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Sublime China 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 Sublime China will offset losses from the drop in Sublime China's long position.| Citic Guoan vs. Ningbo Tip Rubber | Citic Guoan vs. Bohai Leasing Co | Citic Guoan vs. Jilin OLED Material | Citic Guoan vs. Sunny Loan Top |
| Sublime China vs. Industrial and Commercial | Sublime China vs. Kweichow Moutai Co | Sublime China vs. Agricultural Bank of | Sublime China vs. China Mobile Limited |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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