Correlation Between Beijing Bashi and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Bashi Media and Citic Guoan Wine, you can compare the effects of market volatilities on Beijing Bashi 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 Beijing Bashi with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Bashi and Citic Guoan.
Diversification Opportunities for Beijing Bashi and Citic Guoan
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and Citic is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Bashi Media 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 Beijing Bashi 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 Beijing Bashi Media 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 Beijing Bashi i.e., Beijing Bashi and Citic Guoan go up and down completely randomly.
Pair Corralation between Beijing Bashi and Citic Guoan
Assuming the 90 days trading horizon Beijing Bashi Media is expected to generate 1.01 times more return on investment than Citic Guoan. However, Beijing Bashi is 1.01 times more volatile than Citic Guoan Wine. It trades about 0.29 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.16 per unit of risk. If you would invest 420.00 in Beijing Bashi Media on September 3, 2024 and sell it today you would earn a total of 77.00 from holding Beijing Bashi Media or generate 18.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Beijing Bashi Media vs. Citic Guoan Wine
Performance |
| Timeline |
| Beijing Bashi Media |
| Citic Guoan Wine |
Beijing Bashi and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Beijing Bashi and Citic Guoan
The main advantage of trading using opposite Beijing Bashi and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Bashi 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.| Beijing Bashi vs. PetroChina Co Ltd | Beijing Bashi vs. China Mobile Limited | Beijing Bashi vs. Industrial and Commercial | Beijing Bashi vs. China Life Insurance |
| Citic Guoan vs. Luolai Home Textile | Citic Guoan vs. Shandong Homey Aquatic | Citic Guoan vs. Fiberhome Telecommunication Technologies | Citic Guoan vs. Xiamen Goldenhome Co |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Analyst Advice Analyst recommendations and target price estimates broken down by several categories | |
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope |