Correlation Between China Citic and Guizhou BroadcastingTV
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By analyzing existing cross correlation between China Citic Bank and Guizhou BroadcastingTV Info, you can compare the effects of market volatilities on China Citic and Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Guizhou BroadcastingTV.
Diversification Opportunities for China Citic and Guizhou BroadcastingTV
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Guizhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Guizhou BroadcastingTV Info in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guizhou BroadcastingTV 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 Guizhou BroadcastingTV. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guizhou BroadcastingTV has no effect on the direction of China Citic i.e., China Citic and Guizhou BroadcastingTV go up and down completely randomly.
Pair Corralation between China Citic and Guizhou BroadcastingTV
Assuming the 90 days trading horizon China Citic Bank is expected to generate 0.55 times more return on investment than Guizhou BroadcastingTV. However, China Citic Bank is 1.8 times less risky than Guizhou BroadcastingTV. It trades about 0.1 of its potential returns per unit of risk. Guizhou BroadcastingTV Info is currently generating about 0.02 per unit of risk. If you would invest 662.00 in China Citic Bank on September 15, 2024 and sell it today you would earn a total of 21.00 from holding China Citic Bank or generate 3.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Guizhou BroadcastingTV Info
Performance |
| Timeline |
| China Citic Bank |
| Guizhou BroadcastingTV |
China Citic and Guizhou BroadcastingTV Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Guizhou BroadcastingTV
The main advantage of trading using opposite China Citic and Guizhou BroadcastingTV positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Guizhou BroadcastingTV 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 Guizhou BroadcastingTV will offset losses from the drop in Guizhou BroadcastingTV's long position.| China Citic vs. Western Mining Co | China Citic vs. Shanghai Shuixing Home | China Citic vs. Zhengzhou Coal Mining | China Citic vs. Xinjiang Baodi Mining |
| Guizhou BroadcastingTV vs. Lutian Machinery Co | Guizhou BroadcastingTV vs. PetroChina Co Ltd | Guizhou BroadcastingTV vs. Bank of China | Guizhou BroadcastingTV 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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