Correlation Between China Citic and Qi An
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By analyzing existing cross correlation between China Citic Bank and Qi An Xin, you can compare the effects of market volatilities on China Citic and Qi An 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 Qi An. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Qi An.
Diversification Opportunities for China Citic and Qi An
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and 688561 is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Qi An Xin in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Qi An Xin 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 Qi An. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Qi An Xin has no effect on the direction of China Citic i.e., China Citic and Qi An go up and down completely randomly.
Pair Corralation between China Citic and Qi An
Assuming the 90 days trading horizon China Citic Bank is expected to under-perform the Qi An. But the stock apears to be less risky and, when comparing its historical volatility, China Citic Bank is 2.12 times less risky than Qi An. The stock trades about -0.02 of its potential returns per unit of risk. The Qi An Xin is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 2,641 in Qi An Xin on August 28, 2024 and sell it today you would earn a total of 305.00 from holding Qi An Xin or generate 11.55% 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. Qi An Xin
Performance |
| Timeline |
| China Citic Bank |
| Qi An Xin |
China Citic and Qi An Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Qi An
The main advantage of trading using opposite China Citic and Qi An positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Qi An 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 Qi An will offset losses from the drop in Qi An's long position.| China Citic vs. Agricultural Bank of | China Citic vs. Industrial and Commercial | China Citic vs. Bank of China | China Citic vs. China Construction Bank |
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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 Stocks Directory module to find actively traded stocks across global markets.
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