Correlation Between China Citic and Shaanxi Energy
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Citic Bank and Shaanxi Energy Investment, you can compare the effects of market volatilities on China Citic and Shaanxi Energy 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 China Citic with a short position of Shaanxi Energy. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Shaanxi Energy.
Diversification Opportunities for China Citic and Shaanxi Energy
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shaanxi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Shaanxi Energy Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shaanxi Energy Investment and China Citic 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 China Citic Bank are associated (or correlated) with Shaanxi Energy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shaanxi Energy Investment has no effect on the direction of China Citic i.e., China Citic and Shaanxi Energy go up and down completely randomly.
Pair Corralation between China Citic and Shaanxi Energy
Assuming the 90 days trading horizon China Citic Bank is expected to generate 1.11 times more return on investment than Shaanxi Energy. However, China Citic is 1.11 times more volatile than Shaanxi Energy Investment. It trades about 0.06 of its potential returns per unit of risk. Shaanxi Energy Investment is currently generating about 0.03 per unit of risk. If you would invest 668.00 in China Citic Bank on September 4, 2024 and sell it today you would earn a total of 12.00 from holding China Citic Bank or generate 1.8% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Shaanxi Energy Investment
Performance |
| Timeline |
| China Citic Bank |
| Shaanxi Energy Investment |
China Citic and Shaanxi Energy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Shaanxi Energy
The main advantage of trading using opposite China Citic and Shaanxi Energy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Shaanxi Energy 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 Shaanxi Energy will offset losses from the drop in Shaanxi Energy's long position.| China Citic vs. Mingchen Health Co | China Citic vs. Luyin Investment Group | China Citic vs. Beijing Mainstreets Investment | China Citic vs. Shandong Sinoglory Health |
| Shaanxi Energy vs. Zhejiang Kingland Pipeline | Shaanxi Energy vs. Xinjiang Communications Construction | Shaanxi Energy vs. Sino Platinum Metals Co | Shaanxi Energy vs. China Citic 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 Alpha Finder module to use alpha and beta coefficients to find investment opportunities after accounting for the risk.
Other Complementary Tools
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume |