Correlation Between Citic Guoan and Juewei Food
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By analyzing existing cross correlation between Citic Guoan Wine and Juewei Food Co, you can compare the effects of market volatilities on Citic Guoan and Juewei Food 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 Juewei Food. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Juewei Food.
Diversification Opportunities for Citic Guoan and Juewei Food
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Juewei is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Juewei Food Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Juewei Food 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 Juewei Food. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Juewei Food has no effect on the direction of Citic Guoan i.e., Citic Guoan and Juewei Food go up and down completely randomly.
Pair Corralation between Citic Guoan and Juewei Food
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.68 times more return on investment than Juewei Food. However, Citic Guoan Wine is 1.46 times less risky than Juewei Food. It trades about 0.1 of its potential returns per unit of risk. Juewei Food Co is currently generating about 0.05 per unit of risk. If you would invest 577.00 in Citic Guoan Wine on August 30, 2024 and sell it today you would earn a total of 34.00 from holding Citic Guoan Wine or generate 5.89% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Juewei Food Co
Performance |
| Timeline |
| Citic Guoan Wine |
| Juewei Food |
Citic Guoan and Juewei Food Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Juewei Food
The main advantage of trading using opposite Citic Guoan and Juewei Food positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Juewei Food 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 Juewei Food will offset losses from the drop in Juewei Food's long position.| Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Industrial and Commercial | Citic Guoan vs. Bank of China | Citic Guoan vs. China Construction Bank |
| Juewei Food vs. Industrial and Commercial | Juewei Food vs. China Construction Bank | Juewei Food vs. Agricultural Bank of | Juewei Food vs. Bank of China |
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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