Correlation Between Citic Guoan and Lushang Property
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By analyzing existing cross correlation between Citic Guoan Wine and Lushang Property Co, you can compare the effects of market volatilities on Citic Guoan and Lushang Property 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 Lushang Property. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Lushang Property.
Diversification Opportunities for Citic Guoan and Lushang Property
-0.02 | Correlation Coefficient |
Good diversification
The 3 months correlation between Citic and Lushang is -0.02. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Lushang Property Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Lushang Property 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 Lushang Property. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Lushang Property has no effect on the direction of Citic Guoan i.e., Citic Guoan and Lushang Property go up and down completely randomly.
Pair Corralation between Citic Guoan and Lushang Property
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.8 times more return on investment than Lushang Property. However, Citic Guoan Wine is 1.25 times less risky than Lushang Property. It trades about -0.13 of its potential returns per unit of risk. Lushang Property Co is currently generating about -0.16 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 (30.00) from holding Citic Guoan Wine or give up 5.7% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Lushang Property Co
Performance |
| Timeline |
| Citic Guoan Wine |
| Lushang Property |
Citic Guoan and Lushang Property Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Lushang Property
The main advantage of trading using opposite Citic Guoan and Lushang Property positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Lushang Property 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 Lushang Property will offset losses from the drop in Lushang Property's long position.| Citic Guoan vs. Offshore Oil Engineering | Citic Guoan vs. Beijing Kingsoft Office | Citic Guoan vs. Jiangsu Phoenix Publishing | Citic Guoan vs. MayAir Technology Co |
| Lushang Property vs. Hainan Mining Co | Lushang Property vs. Tibet Huayu Mining | Lushang Property vs. Zhangjiagang Freetrade Science | Lushang Property vs. Anhui Jinhe Industrial |
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 Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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