Correlation Between China Citic and Shanghai Jin
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By analyzing existing cross correlation between China Citic Bank and Shanghai Jin Jiang, you can compare the effects of market volatilities on China Citic and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Shanghai Jin.
Diversification Opportunities for China Citic and Shanghai Jin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shanghai is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of China Citic i.e., China Citic and Shanghai Jin go up and down completely randomly.
Pair Corralation between China Citic and Shanghai Jin
Assuming the 90 days trading horizon China Citic Bank is expected to generate 1.01 times more return on investment than Shanghai Jin. However, China Citic is 1.01 times more volatile than Shanghai Jin Jiang. It trades about 0.04 of its potential returns per unit of risk. Shanghai Jin Jiang is currently generating about 0.0 per unit of risk. If you would invest 570.00 in China Citic Bank on September 26, 2024 and sell it today you would earn a total of 125.00 from holding China Citic Bank or generate 21.93% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.66% |
| Values | Daily Returns |
China Citic Bank vs. Shanghai Jin Jiang
Performance |
| Timeline |
| China Citic Bank |
| Shanghai Jin Jiang |
China Citic and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Shanghai Jin
The main advantage of trading using opposite China Citic and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| China Citic vs. Kweichow Moutai Co | China Citic vs. Contemporary Amperex Technology | China Citic vs. G bits Network Technology | China Citic vs. BYD Co Ltd |
| Shanghai Jin vs. Bank of China | Shanghai Jin vs. Kweichow Moutai Co | Shanghai Jin vs. PetroChina Co Ltd | Shanghai Jin vs. Bank of Communications |
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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.
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