Correlation Between Citic Guoan and Shanghai Broadband
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Shanghai Broadband Technology, you can compare the effects of market volatilities on Citic Guoan and Shanghai Broadband 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 Shanghai Broadband. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Shanghai Broadband.
Diversification Opportunities for Citic Guoan and Shanghai Broadband
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citic and Shanghai is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Shanghai Broadband Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Broadband 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 Shanghai Broadband. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Broadband has no effect on the direction of Citic Guoan i.e., Citic Guoan and Shanghai Broadband go up and down completely randomly.
Pair Corralation between Citic Guoan and Shanghai Broadband
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Shanghai Broadband. But the stock apears to be less risky and, when comparing its historical volatility, Citic Guoan Wine is 1.14 times less risky than Shanghai Broadband. The stock trades about -0.43 of its potential returns per unit of risk. The Shanghai Broadband Technology is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 361.00 in Shanghai Broadband Technology on October 16, 2024 and sell it today you would lose (59.00) from holding Shanghai Broadband Technology or give up 16.34% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Citic Guoan Wine vs. Shanghai Broadband Technology
Performance |
| Timeline |
| Citic Guoan Wine |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Shanghai Broadband |
Citic Guoan and Shanghai Broadband Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Shanghai Broadband
The main advantage of trading using opposite Citic Guoan and Shanghai Broadband positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Shanghai Broadband 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 Shanghai Broadband will offset losses from the drop in Shanghai Broadband's long position.| Citic Guoan vs. Linewell Software Co | Citic Guoan vs. Ye Chiu Metal | Citic Guoan vs. Guangzhou KingTeller Technology | Citic Guoan vs. Bangyan Technology Co |
| Shanghai Broadband vs. GRG Banking Equipment | Shanghai Broadband vs. Huayi Brothers Media | Shanghai Broadband vs. Ningbo Tech Bank Co | Shanghai Broadband vs. Peoples Insurance of |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Stocks Directory Find actively traded stocks across global markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |