Correlation Between Bank of Communications and Citic Guoan
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By analyzing existing cross correlation between Bank of Communications and Citic Guoan Wine, you can compare the effects of market volatilities on Bank of Communications 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 Bank of Communications with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Bank of Communications and Citic Guoan.
Diversification Opportunities for Bank of Communications and Citic Guoan
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Bank and Citic is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Bank of Communications 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 Bank of Communications 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 Bank of Communications 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 Bank of Communications i.e., Bank of Communications and Citic Guoan go up and down completely randomly.
Pair Corralation between Bank of Communications and Citic Guoan
Assuming the 90 days trading horizon Bank of Communications is expected to generate 0.49 times more return on investment than Citic Guoan. However, Bank of Communications is 2.05 times less risky than Citic Guoan. It trades about -0.3 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.18 per unit of risk. If you would invest 773.00 in Bank of Communications on October 25, 2024 and sell it today you would lose (56.00) from holding Bank of Communications or give up 7.24% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Bank of Communications vs. Citic Guoan Wine
Performance |
| Timeline |
| Bank of Communications |
| Citic Guoan Wine |
Bank of Communications and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Bank of Communications and Citic Guoan
The main advantage of trading using opposite Bank of Communications and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Bank of Communications 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.| Bank of Communications vs. Bank of China | Bank of Communications vs. Kweichow Moutai Co | Bank of Communications vs. PetroChina Co Ltd | Bank of Communications vs. China Mobile Limited |
| Citic Guoan vs. Agricultural Bank of | Citic Guoan vs. Postal Savings Bank | Citic Guoan vs. Bank of Communications | Citic Guoan vs. China Merchants Bank |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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