Correlation Between 360 Security and CITIC Guoan
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By analyzing existing cross correlation between 360 Security Technology and CITIC Guoan Information, you can compare the effects of market volatilities on 360 Security 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 360 Security with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of 360 Security and CITIC Guoan.
Diversification Opportunities for 360 Security and CITIC Guoan
0.49 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 360 and CITIC is 0.49. Overlapping area represents the amount of risk that can be diversified away by holding 360 Security Technology 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 360 Security 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 360 Security Technology 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 360 Security i.e., 360 Security and CITIC Guoan go up and down completely randomly.
Pair Corralation between 360 Security and CITIC Guoan
Assuming the 90 days trading horizon 360 Security Technology is expected to generate 1.2 times more return on investment than CITIC Guoan. However, 360 Security is 1.2 times more volatile than CITIC Guoan Information. It trades about -0.13 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.17 per unit of risk. If you would invest 1,340 in 360 Security Technology on October 30, 2024 and sell it today you would lose (230.00) from holding 360 Security Technology or give up 17.16% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
360 Security Technology vs. CITIC Guoan Information
Performance |
Timeline |
360 Security Technology |
CITIC Guoan Information |
360 Security and CITIC Guoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with 360 Security and CITIC Guoan
The main advantage of trading using opposite 360 Security and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if 360 Security 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.360 Security vs. China State Construction | 360 Security vs. Poly Real Estate | 360 Security vs. China Vanke Co | 360 Security vs. China Merchants Shekou |
CITIC Guoan vs. Anhui Huaheng Biotechnology | CITIC Guoan vs. Iat Automobile Technology | CITIC Guoan vs. Zotye Automobile Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology |
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 Bonds Directory module to find actively traded corporate debentures issued by US companies.
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