Correlation Between Cultural Investment and CITIC Guoan
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By analyzing existing cross correlation between Cultural Investment Holdings and CITIC Guoan Information, you can compare the effects of market volatilities on Cultural Investment 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 Cultural Investment with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cultural Investment and CITIC Guoan.
Diversification Opportunities for Cultural Investment and CITIC Guoan
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Cultural and CITIC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Cultural Investment 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 Cultural Investment 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 Cultural Investment 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 Cultural Investment i.e., Cultural Investment and CITIC Guoan go up and down completely randomly.
Pair Corralation between Cultural Investment and CITIC Guoan
Assuming the 90 days trading horizon Cultural Investment Holdings is expected to generate 1.17 times more return on investment than CITIC Guoan. However, Cultural Investment is 1.17 times more volatile than CITIC Guoan Information. It trades about 0.0 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.04 per unit of risk. If you would invest 247.00 in Cultural Investment Holdings on September 14, 2024 and sell it today you would lose (2.00) from holding Cultural Investment Holdings or give up 0.81% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cultural Investment Holdings vs. CITIC Guoan Information
Performance |
| Timeline |
| Cultural Investment |
| CITIC Guoan Information |
Cultural Investment and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cultural Investment and CITIC Guoan
The main advantage of trading using opposite Cultural Investment and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cultural Investment 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.| Cultural Investment vs. Industrial and Commercial | Cultural Investment vs. China Construction Bank | Cultural Investment vs. Agricultural Bank of | Cultural Investment vs. Bank of China |
| CITIC Guoan vs. Tongding Interconnection Information | CITIC Guoan vs. Leaguer Shenzhen MicroElectronics | CITIC Guoan vs. Datang HuaYin Electric | CITIC Guoan vs. Focus Media Information |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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