Correlation Between China Citic and Qingdao Rural
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By analyzing existing cross correlation between China Citic Bank and Qingdao Rural Commercial, you can compare the effects of market volatilities on China Citic and Qingdao Rural 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 Qingdao Rural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Qingdao Rural.
Diversification Opportunities for China Citic and Qingdao Rural
0.77 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Qingdao is 0.77. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Qingdao Rural Commercial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qingdao Rural Commercial 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 Qingdao Rural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qingdao Rural Commercial has no effect on the direction of China Citic i.e., China Citic and Qingdao Rural go up and down completely randomly.
Pair Corralation between China Citic and Qingdao Rural
Assuming the 90 days trading horizon China Citic Bank is expected to generate 1.4 times more return on investment than Qingdao Rural. However, China Citic is 1.4 times more volatile than Qingdao Rural Commercial. It trades about 0.05 of its potential returns per unit of risk. Qingdao Rural Commercial is currently generating about 0.02 per unit of risk. If you would invest 483.00 in China Citic Bank on September 4, 2024 and sell it today you would earn a total of 197.00 from holding China Citic Bank or generate 40.79% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Citic Bank vs. Qingdao Rural Commercial
Performance |
| Timeline |
| China Citic Bank |
| Qingdao Rural Commercial |
China Citic and Qingdao Rural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Qingdao Rural
The main advantage of trading using opposite China Citic and Qingdao Rural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Qingdao Rural 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 Qingdao Rural will offset losses from the drop in Qingdao Rural'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 |
| Qingdao Rural vs. Jiangnan Mould Plastic | Qingdao Rural vs. Ningbo Tip Rubber | Qingdao Rural vs. Suzhou Xingye Material | Qingdao Rural vs. Dongguan Aohai Technology |
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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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