Correlation Between ButOne Information and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between ButOne Information Corp and CITIC Guoan Information, you can compare the effects of market volatilities on ButOne Information 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 ButOne Information with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of ButOne Information and CITIC Guoan.
Diversification Opportunities for ButOne Information and CITIC Guoan
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between ButOne and CITIC is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding ButOne Information Corp and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and ButOne Information 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 ButOne Information Corp 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 Information has no effect on the direction of ButOne Information i.e., ButOne Information and CITIC Guoan go up and down completely randomly.
Pair Corralation between ButOne Information and CITIC Guoan
Assuming the 90 days trading horizon ButOne Information is expected to generate 13.23 times less return on investment than CITIC Guoan. In addition to that, ButOne Information is 1.19 times more volatile than CITIC Guoan Information. It trades about 0.0 of its total potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.02 per unit of volatility. If you would invest 263.00 in CITIC Guoan Information on October 12, 2024 and sell it today you would earn a total of 21.00 from holding CITIC Guoan Information or generate 7.98% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
ButOne Information Corp vs. CITIC Guoan Information
Performance |
| Timeline |
| ButOne Information Corp |
| CITIC Guoan Information |
ButOne Information and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with ButOne Information and CITIC Guoan
The main advantage of trading using opposite ButOne Information and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if ButOne Information 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.The idea behind ButOne Information Corp and CITIC Guoan Information pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
| CITIC Guoan vs. Ningbo Tech Bank Co | CITIC Guoan vs. GRIPM Advanced Materials | CITIC Guoan vs. GRG Banking Equipment | CITIC Guoan vs. Shanghai Phichem Material |
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 ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Portfolio Diagnostics Use generated alerts and portfolio events aggregator to diagnose current holdings | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Idea Breakdown Analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges |