Correlation Between Citic Guoan and Industrial
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By analyzing existing cross correlation between Citic Guoan Wine and Industrial and Commercial, you can compare the effects of market volatilities on Citic Guoan and Industrial 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 Industrial. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Industrial.
Diversification Opportunities for Citic Guoan and Industrial
-0.31 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Citic and Industrial is -0.31. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Industrial and Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Industrial and Commercial 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 Industrial. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Industrial and Commercial has no effect on the direction of Citic Guoan i.e., Citic Guoan and Industrial go up and down completely randomly.
Pair Corralation between Citic Guoan and Industrial
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Industrial. In addition to that, Citic Guoan is 2.06 times more volatile than Industrial and Commercial. It trades about -0.41 of its total potential returns per unit of risk. Industrial and Commercial is currently generating about 0.25 per unit of volatility. If you would invest 632.00 in Industrial and Commercial on October 9, 2024 and sell it today you would earn a total of 43.00 from holding Industrial and Commercial or generate 6.8% 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. Industrial and Commercial
Performance |
| Timeline |
| Citic Guoan Wine |
| Industrial and Commercial |
Citic Guoan and Industrial Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Industrial
The main advantage of trading using opposite Citic Guoan and Industrial positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Industrial 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 Industrial will offset losses from the drop in Industrial's long position.| Citic Guoan vs. NBTM New Materials | Citic Guoan vs. AVIC Fund Management | Citic Guoan vs. Orinko Advanced Plastics | Citic Guoan vs. Shanghai Phichem Material |
| Industrial vs. China Asset Management | Industrial vs. Guangdong Jingyi Metal | Industrial vs. Minmetals Capital Co | Industrial vs. Xinjiang Baodi Mining |
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 Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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