Correlation Between Citic Guoan and Cansino Biologics
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Guoan Wine and Cansino Biologics, you can compare the effects of market volatilities on Citic Guoan and Cansino Biologics 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 Cansino Biologics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Cansino Biologics.
Diversification Opportunities for Citic Guoan and Cansino Biologics
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Citic and Cansino is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Cansino Biologics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cansino Biologics 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 Cansino Biologics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cansino Biologics has no effect on the direction of Citic Guoan i.e., Citic Guoan and Cansino Biologics go up and down completely randomly.
Pair Corralation between Citic Guoan and Cansino Biologics
Assuming the 90 days trading horizon Citic Guoan is expected to generate 2.9 times less return on investment than Cansino Biologics. But when comparing it to its historical volatility, Citic Guoan Wine is 1.91 times less risky than Cansino Biologics. It trades about 0.1 of its potential returns per unit of risk. Cansino Biologics is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 5,581 in Cansino Biologics on August 30, 2024 and sell it today you would earn a total of 969.00 from holding Cansino Biologics or generate 17.36% 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. Cansino Biologics
Performance |
| Timeline |
| Citic Guoan Wine |
| Cansino Biologics |
Citic Guoan and Cansino Biologics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Cansino Biologics
The main advantage of trading using opposite Citic Guoan and Cansino Biologics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Cansino Biologics 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 Cansino Biologics will offset losses from the drop in Cansino Biologics' 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 |
| Cansino Biologics vs. Yindu Kitchen Equipment | Cansino Biologics vs. Marssenger Kitchenware Co | Cansino Biologics vs. Jahen Household Products | Cansino Biologics vs. Markor International Home |
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 Analyst Advice module to analyst recommendations and target price estimates broken down by several categories.
Other Complementary Tools
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets | |
| Stock Tickers Use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |