Correlation Between Citic Guoan and Shanghai Yanpu
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Shanghai Yanpu Metal, you can compare the effects of market volatilities on Citic Guoan and Shanghai Yanpu 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 Yanpu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Shanghai Yanpu.
Diversification Opportunities for Citic Guoan and Shanghai Yanpu
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citic and Shanghai is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Shanghai Yanpu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Yanpu Metal 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 Yanpu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Yanpu Metal has no effect on the direction of Citic Guoan i.e., Citic Guoan and Shanghai Yanpu go up and down completely randomly.
Pair Corralation between Citic Guoan and Shanghai Yanpu
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Shanghai Yanpu. In addition to that, Citic Guoan is 1.6 times more volatile than Shanghai Yanpu Metal. It trades about -0.31 of its total potential returns per unit of risk. Shanghai Yanpu Metal is currently generating about -0.19 per unit of volatility. If you would invest 3,887 in Shanghai Yanpu Metal on October 11, 2024 and sell it today you would lose (290.00) from holding Shanghai Yanpu Metal or give up 7.46% 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. Shanghai Yanpu Metal
Performance |
| Timeline |
| Citic Guoan Wine |
| Shanghai Yanpu Metal |
Citic Guoan and Shanghai Yanpu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Shanghai Yanpu
The main advantage of trading using opposite Citic Guoan and Shanghai Yanpu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Shanghai Yanpu 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 Yanpu will offset losses from the drop in Shanghai Yanpu's long position.| Citic Guoan vs. Chongqing Shunbo Aluminum | Citic Guoan vs. Cultural Investment Holdings | Citic Guoan vs. Xiandai Investment Co | Citic Guoan vs. Jiaozuo Wanfang Aluminum |
| Shanghai Yanpu vs. Jinhui Mining Co | Shanghai Yanpu vs. Guangdong Silvere Sci | Shanghai Yanpu vs. Gansu Huangtai Wine marketing | Shanghai Yanpu 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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |