Correlation Between Citic Guoan and GRIPM Advanced
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By analyzing existing cross correlation between Citic Guoan Wine and GRIPM Advanced Materials, you can compare the effects of market volatilities on Citic Guoan and GRIPM Advanced 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 GRIPM Advanced. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and GRIPM Advanced.
Diversification Opportunities for Citic Guoan and GRIPM Advanced
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and GRIPM is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and GRIPM Advanced Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRIPM Advanced Materials 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 GRIPM Advanced. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRIPM Advanced Materials has no effect on the direction of Citic Guoan i.e., Citic Guoan and GRIPM Advanced go up and down completely randomly.
Pair Corralation between Citic Guoan and GRIPM Advanced
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 1.09 times more return on investment than GRIPM Advanced. However, Citic Guoan is 1.09 times more volatile than GRIPM Advanced Materials. It trades about 0.1 of its potential returns per unit of risk. GRIPM Advanced Materials is currently generating about 0.08 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 | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. GRIPM Advanced Materials
Performance |
| Timeline |
| Citic Guoan Wine |
| GRIPM Advanced Materials |
Citic Guoan and GRIPM Advanced Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and GRIPM Advanced
The main advantage of trading using opposite Citic Guoan and GRIPM Advanced positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, GRIPM Advanced 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 GRIPM Advanced will offset losses from the drop in GRIPM Advanced'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 |
| GRIPM Advanced vs. Zijin Mining Group | GRIPM Advanced vs. Wanhua Chemical Group | GRIPM Advanced vs. Baoshan Iron Steel | GRIPM Advanced 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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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