Correlation Between Shanghai Shibei and CITIC Guoan
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By analyzing existing cross correlation between Shanghai Shibei Hi Tech and CITIC Guoan Information, you can compare the effects of market volatilities on Shanghai Shibei 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 Shanghai Shibei with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Shibei and CITIC Guoan.
Diversification Opportunities for Shanghai Shibei and CITIC Guoan
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Shanghai and CITIC is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Shibei Hi Tech 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 Shanghai Shibei 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 Shanghai Shibei Hi Tech 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 Shanghai Shibei i.e., Shanghai Shibei and CITIC Guoan go up and down completely randomly.
Pair Corralation between Shanghai Shibei and CITIC Guoan
Assuming the 90 days trading horizon Shanghai Shibei Hi Tech is expected to generate 1.81 times more return on investment than CITIC Guoan. However, Shanghai Shibei is 1.81 times more volatile than CITIC Guoan Information. It trades about -0.21 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.51 per unit of risk. If you would invest 550.00 in Shanghai Shibei Hi Tech on October 12, 2024 and sell it today you would lose (107.00) from holding Shanghai Shibei Hi Tech or give up 19.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Shibei Hi Tech vs. CITIC Guoan Information
Performance |
| Timeline |
| Shanghai Shibei Hi |
| CITIC Guoan Information |
Shanghai Shibei and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Shibei and CITIC Guoan
The main advantage of trading using opposite Shanghai Shibei and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Shibei 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.| Shanghai Shibei vs. Ming Yang Smart | Shanghai Shibei vs. 159681 | Shanghai Shibei vs. 159005 | Shanghai Shibei vs. Loctek Ergonomic Technology |
| CITIC Guoan vs. Tongyu Communication | CITIC Guoan vs. Sunwave Communications Co | CITIC Guoan vs. Jiangxi Hengda Hi Tech | CITIC Guoan vs. Shanghai Shibei Hi Tech |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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