Correlation Between Citic Guoan and Zhejiang Daily
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By analyzing existing cross correlation between Citic Guoan Wine and Zhejiang Daily Media, you can compare the effects of market volatilities on Citic Guoan and Zhejiang Daily 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 Zhejiang Daily. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Zhejiang Daily.
Diversification Opportunities for Citic Guoan and Zhejiang Daily
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Zhejiang is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Zhejiang Daily Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Daily Media 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 Zhejiang Daily. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Daily Media has no effect on the direction of Citic Guoan i.e., Citic Guoan and Zhejiang Daily go up and down completely randomly.
Pair Corralation between Citic Guoan and Zhejiang Daily
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Zhejiang Daily. In addition to that, Citic Guoan is 1.13 times more volatile than Zhejiang Daily Media. It trades about -0.03 of its total potential returns per unit of risk. Zhejiang Daily Media is currently generating about -0.02 per unit of volatility. If you would invest 1,314 in Zhejiang Daily Media on August 27, 2024 and sell it today you would lose (243.00) from holding Zhejiang Daily Media or give up 18.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Zhejiang Daily Media
Performance |
| Timeline |
| Citic Guoan Wine |
| Zhejiang Daily Media |
Citic Guoan and Zhejiang Daily Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Zhejiang Daily
The main advantage of trading using opposite Citic Guoan and Zhejiang Daily positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Zhejiang Daily 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 Zhejiang Daily will offset losses from the drop in Zhejiang Daily's long position.| Citic Guoan vs. Zhejiang Daily Media | Citic Guoan vs. Focus Media Information | Citic Guoan vs. Northking Information Technology | Citic Guoan vs. Sportsoul Co Ltd |
| Zhejiang Daily vs. China Life Insurance | Zhejiang Daily vs. Dongxing Sec Co | Zhejiang Daily vs. Shanghai OPM Biosciences | Zhejiang Daily vs. National Silicon Industry |
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 Idea Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
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