Correlation Between Citic Guoan and Huaneng Lancang
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Huaneng Lancang River, you can compare the effects of market volatilities on Citic Guoan and Huaneng Lancang 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 Huaneng Lancang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Huaneng Lancang.
Diversification Opportunities for Citic Guoan and Huaneng Lancang
-0.73 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Citic and Huaneng is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Huaneng Lancang River in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Huaneng Lancang River 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 Huaneng Lancang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Huaneng Lancang River has no effect on the direction of Citic Guoan i.e., Citic Guoan and Huaneng Lancang go up and down completely randomly.
Pair Corralation between Citic Guoan and Huaneng Lancang
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 1.52 times more return on investment than Huaneng Lancang. However, Citic Guoan is 1.52 times more volatile than Huaneng Lancang River. It trades about 0.1 of its potential returns per unit of risk. Huaneng Lancang River is currently generating about 0.02 per unit of risk. If you would invest 582.00 in Citic Guoan Wine on September 19, 2024 and sell it today you would earn a total of 23.00 from holding Citic Guoan Wine or generate 3.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Huaneng Lancang River
Performance |
| Timeline |
| Citic Guoan Wine |
| Huaneng Lancang River |
Citic Guoan and Huaneng Lancang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Huaneng Lancang
The main advantage of trading using opposite Citic Guoan and Huaneng Lancang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Huaneng Lancang 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 Huaneng Lancang will offset losses from the drop in Huaneng Lancang's long position.| Citic Guoan vs. Xinjiang Beixin RoadBridge | Citic Guoan vs. Anhui Transport Consulting | Citic Guoan vs. Wintao Communications Co | Citic Guoan vs. Longjian Road Bridge |
| Huaneng Lancang vs. Winner Medical Co | Huaneng Lancang vs. Citic Guoan Wine | Huaneng Lancang vs. Chongqing Brewery Co | Huaneng Lancang vs. Innovative Medical Management |
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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |