Correlation Between NBTM New and Citic Guoan
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By analyzing existing cross correlation between NBTM New Materials and Citic Guoan Wine, you can compare the effects of market volatilities on NBTM New and Citic Guoan 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 NBTM New with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of NBTM New and Citic Guoan.
Diversification Opportunities for NBTM New and Citic Guoan
0.4 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between NBTM and Citic is 0.4. Overlapping area represents the amount of risk that can be diversified away by holding NBTM New Materials and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine and NBTM New 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 NBTM New Materials are associated (or correlated) with Citic Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Guoan Wine has no effect on the direction of NBTM New i.e., NBTM New and Citic Guoan go up and down completely randomly.
Pair Corralation between NBTM New and Citic Guoan
Assuming the 90 days trading horizon NBTM New Materials is expected to generate 1.18 times more return on investment than Citic Guoan. However, NBTM New is 1.18 times more volatile than Citic Guoan Wine. It trades about 0.13 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.19 per unit of risk. If you would invest 1,603 in NBTM New Materials on October 24, 2024 and sell it today you would earn a total of 119.00 from holding NBTM New Materials or generate 7.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
NBTM New Materials vs. Citic Guoan Wine
Performance |
| Timeline |
| NBTM New Materials |
| Citic Guoan Wine |
NBTM New and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with NBTM New and Citic Guoan
The main advantage of trading using opposite NBTM New and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if NBTM New position performs unexpectedly, Citic Guoan 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 Citic Guoan will offset losses from the drop in Citic Guoan's long position.| NBTM New vs. PetroChina Co Ltd | NBTM New vs. Gansu Jiu Steel | NBTM New vs. Ming Yang Smart | NBTM New vs. Aba Chemicals Corp |
| Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Postal Savings Bank | Citic Guoan vs. Bank of Communications | Citic Guoan vs. China Merchants Bank |
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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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