Correlation Between Citic Guoan and Nanjing Vishee
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By analyzing existing cross correlation between Citic Guoan Wine and Nanjing Vishee Medical, you can compare the effects of market volatilities on Citic Guoan and Nanjing Vishee 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 Nanjing Vishee. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Nanjing Vishee.
Diversification Opportunities for Citic Guoan and Nanjing Vishee
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Citic and Nanjing is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Nanjing Vishee Medical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nanjing Vishee Medical 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 Nanjing Vishee. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nanjing Vishee Medical has no effect on the direction of Citic Guoan i.e., Citic Guoan and Nanjing Vishee go up and down completely randomly.
Pair Corralation between Citic Guoan and Nanjing Vishee
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.7 times more return on investment than Nanjing Vishee. However, Citic Guoan Wine is 1.43 times less risky than Nanjing Vishee. It trades about -0.02 of its potential returns per unit of risk. Nanjing Vishee Medical is currently generating about -0.03 per unit of risk. If you would invest 706.00 in Citic Guoan Wine on October 16, 2024 and sell it today you would lose (213.00) from holding Citic Guoan Wine or give up 30.17% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Guoan Wine vs. Nanjing Vishee Medical
Performance |
| Timeline |
| Citic Guoan Wine |
| Nanjing Vishee Medical |
Citic Guoan and Nanjing Vishee Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Guoan and Nanjing Vishee
The main advantage of trading using opposite Citic Guoan and Nanjing Vishee positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Nanjing Vishee 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 Nanjing Vishee will offset losses from the drop in Nanjing Vishee's long position.| Citic Guoan vs. Linewell Software Co | Citic Guoan vs. Ye Chiu Metal | Citic Guoan vs. Guangzhou KingTeller Technology | Citic Guoan vs. Bangyan Technology Co |
| Nanjing Vishee vs. Jilin Jlu Communication | Nanjing Vishee vs. Chengdu Xinzhu RoadBridge | Nanjing Vishee vs. Zhengping RoadBridge Constr | Nanjing Vishee vs. TianJin 712 Communication |
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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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