Correlation Between China Citic and Everdisplay Optronics
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By analyzing existing cross correlation between China Citic Bank and Everdisplay Optronics Shanghai, you can compare the effects of market volatilities on China Citic and Everdisplay Optronics 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 Everdisplay Optronics. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Everdisplay Optronics.
Diversification Opportunities for China Citic and Everdisplay Optronics
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Everdisplay is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Everdisplay Optronics Shanghai in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Everdisplay Optronics 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 Everdisplay Optronics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Everdisplay Optronics has no effect on the direction of China Citic i.e., China Citic and Everdisplay Optronics go up and down completely randomly.
Pair Corralation between China Citic and Everdisplay Optronics
Assuming the 90 days trading horizon China Citic Bank is expected to generate 0.64 times more return on investment than Everdisplay Optronics. However, China Citic Bank is 1.56 times less risky than Everdisplay Optronics. It trades about 0.07 of its potential returns per unit of risk. Everdisplay Optronics Shanghai is currently generating about 0.0 per unit of risk. If you would invest 666.00 in China Citic Bank on September 2, 2024 and sell it today you would earn a total of 13.00 from holding China Citic Bank or generate 1.95% 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. Everdisplay Optronics Shanghai
Performance |
| Timeline |
| China Citic Bank |
| Everdisplay Optronics |
China Citic and Everdisplay Optronics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Everdisplay Optronics
The main advantage of trading using opposite China Citic and Everdisplay Optronics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Everdisplay Optronics 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 Everdisplay Optronics will offset losses from the drop in Everdisplay Optronics' long position.| China Citic vs. Huaibei Mining Holdings | China Citic vs. Hangzhou Minsheng Healthcare | China Citic vs. JCHX Mining Management | China Citic vs. PKU HealthCare Corp |
| Everdisplay Optronics vs. Cultural Investment Holdings | Everdisplay Optronics vs. Gome Telecom Equipment | Everdisplay Optronics vs. Bus Online Co | Everdisplay Optronics vs. Zotye Automobile Co |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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