Correlation Between Zhongzhu Medical and CITIC Guoan
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By analyzing existing cross correlation between Zhongzhu Medical Holdings and CITIC Guoan Information, you can compare the effects of market volatilities on Zhongzhu Medical 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 Zhongzhu Medical with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongzhu Medical and CITIC Guoan.
Diversification Opportunities for Zhongzhu Medical and CITIC Guoan
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhongzhu and CITIC is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding Zhongzhu Medical Holdings 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 Zhongzhu Medical 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 Zhongzhu Medical Holdings 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 Zhongzhu Medical i.e., Zhongzhu Medical and CITIC Guoan go up and down completely randomly.
Pair Corralation between Zhongzhu Medical and CITIC Guoan
Assuming the 90 days trading horizon Zhongzhu Medical Holdings is expected to under-perform the CITIC Guoan. But the stock apears to be less risky and, when comparing its historical volatility, Zhongzhu Medical Holdings is 1.24 times less risky than CITIC Guoan. The stock trades about -0.38 of its potential returns per unit of risk. The CITIC Guoan Information is currently generating about -0.29 of returns per unit of risk over similar time horizon. If you would invest 346.00 in CITIC Guoan Information on October 21, 2024 and sell it today you would lose (57.00) from holding CITIC Guoan Information or give up 16.47% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhongzhu Medical Holdings vs. CITIC Guoan Information
Performance |
| Timeline |
| Zhongzhu Medical Holdings |
| CITIC Guoan Information |
Zhongzhu Medical and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongzhu Medical and CITIC Guoan
The main advantage of trading using opposite Zhongzhu Medical and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongzhu Medical 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.| Zhongzhu Medical vs. Shanghai Yanpu Metal | Zhongzhu Medical vs. Pengxin International Mining | Zhongzhu Medical vs. Shaanxi Construction Machinery | Zhongzhu Medical vs. Air China Ltd |
| CITIC Guoan vs. Digiwin Software Co | CITIC Guoan vs. Iat Automobile Technology | CITIC Guoan vs. Dhc Software Co | CITIC Guoan vs. Linewell Software 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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