Correlation Between Citic Guoan and Sinosteel Luonai
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Sinosteel Luonai Materials, you can compare the effects of market volatilities on Citic Guoan and Sinosteel Luonai 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 Sinosteel Luonai. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Sinosteel Luonai.
Diversification Opportunities for Citic Guoan and Sinosteel Luonai
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Sinosteel is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Sinosteel Luonai Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sinosteel Luonai Mat 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 Sinosteel Luonai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sinosteel Luonai Mat has no effect on the direction of Citic Guoan i.e., Citic Guoan and Sinosteel Luonai go up and down completely randomly.
Pair Corralation between Citic Guoan and Sinosteel Luonai
Assuming the 90 days trading horizon Citic Guoan Wine is expected to under-perform the Sinosteel Luonai. In addition to that, Citic Guoan is 1.13 times more volatile than Sinosteel Luonai Materials. It trades about -0.02 of its total potential returns per unit of risk. Sinosteel Luonai Materials is currently generating about 0.04 per unit of volatility. If you would invest 408.00 in Sinosteel Luonai Materials on August 29, 2024 and sell it today you would earn a total of 6.00 from holding Sinosteel Luonai Materials or generate 1.47% 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. Sinosteel Luonai Materials
Performance |
| Timeline |
| Citic Guoan Wine |
| Sinosteel Luonai Mat |
Citic Guoan and Sinosteel Luonai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Sinosteel Luonai
The main advantage of trading using opposite Citic Guoan and Sinosteel Luonai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Sinosteel Luonai 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 Sinosteel Luonai will offset losses from the drop in Sinosteel Luonai's long position.| Citic Guoan vs. Rising Nonferrous Metals | Citic Guoan vs. Shanghai Yanpu Metal | Citic Guoan vs. Glodon Software Co | Citic Guoan vs. ZYF Lopsking Aluminum |
| Sinosteel Luonai vs. Zijin Mining Group | Sinosteel Luonai vs. Wanhua Chemical Group | Sinosteel Luonai vs. Baoshan Iron Steel | Sinosteel Luonai vs. Shandong Gold 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
Other Complementary Tools
| Efficient Frontier Plot and analyze your portfolio and positions against risk-return landscape of the market. | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Equity Valuation Check real value of public entities based on technical and fundamental data |