Correlation Between Citic Guoan and Servyou Software
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By analyzing existing cross correlation between Citic Guoan Wine and Servyou Software Group, you can compare the effects of market volatilities on Citic Guoan and Servyou Software 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 Servyou Software. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Servyou Software.
Diversification Opportunities for Citic Guoan and Servyou Software
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citic and Servyou is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Servyou Software Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Servyou Software 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 Servyou Software. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Servyou Software has no effect on the direction of Citic Guoan i.e., Citic Guoan and Servyou Software go up and down completely randomly.
Pair Corralation between Citic Guoan and Servyou Software
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Servyou Software. In addition to that, Citic Guoan is 1.07 times more volatile than Servyou Software Group. It trades about -0.31 of its total potential returns per unit of risk. Servyou Software Group is currently generating about -0.21 per unit of volatility. If you would invest 3,267 in Servyou Software Group on October 16, 2024 and sell it today you would lose (401.00) from holding Servyou Software Group or give up 12.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Servyou Software Group
Performance |
| Timeline |
| Citic Guoan Wine |
| Servyou Software |
Citic Guoan and Servyou Software Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Servyou Software
The main advantage of trading using opposite Citic Guoan and Servyou Software positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Servyou Software 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 Servyou Software will offset losses from the drop in Servyou Software'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 |
| Servyou Software vs. Henan Shuanghui Investment | Servyou Software vs. Nuode Investment Co | Servyou Software vs. Harbin Air Conditioning | Servyou Software vs. Citic Guoan Wine |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
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