Correlation Between Jiangsu Xinri and CITIC Guoan
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By analyzing existing cross correlation between Jiangsu Xinri E Vehicle and CITIC Guoan Information, you can compare the effects of market volatilities on Jiangsu Xinri and CITIC Guoan 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 Jiangsu Xinri with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangsu Xinri and CITIC Guoan.
Diversification Opportunities for Jiangsu Xinri and CITIC Guoan
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Jiangsu and CITIC is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Jiangsu Xinri E Vehicle and CITIC Guoan Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Guoan Information and Jiangsu Xinri 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 Jiangsu Xinri E Vehicle are associated (or correlated) with CITIC Guoan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Guoan Information has no effect on the direction of Jiangsu Xinri i.e., Jiangsu Xinri and CITIC Guoan go up and down completely randomly.
Pair Corralation between Jiangsu Xinri and CITIC Guoan
Assuming the 90 days trading horizon Jiangsu Xinri E Vehicle is expected to generate 0.65 times more return on investment than CITIC Guoan. However, Jiangsu Xinri E Vehicle is 1.53 times less risky than CITIC Guoan. It trades about 0.08 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about -0.2 per unit of risk. If you would invest 1,115 in Jiangsu Xinri E Vehicle on September 12, 2024 and sell it today you would earn a total of 35.00 from holding Jiangsu Xinri E Vehicle or generate 3.14% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangsu Xinri E Vehicle vs. CITIC Guoan Information
Performance |
| Timeline |
| Jiangsu Xinri E |
| CITIC Guoan Information |
Jiangsu Xinri and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangsu Xinri and CITIC Guoan
The main advantage of trading using opposite Jiangsu Xinri and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangsu Xinri position performs unexpectedly, CITIC Guoan 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 CITIC Guoan will offset losses from the drop in CITIC Guoan's long position.| Jiangsu Xinri vs. Lutian Machinery Co | Jiangsu Xinri vs. PetroChina Co Ltd | Jiangsu Xinri vs. Bank of China | Jiangsu Xinri vs. Gansu Jiu Steel |
| CITIC Guoan vs. Kweichow Moutai Co | CITIC Guoan vs. Shenzhen Mindray Bio Medical | CITIC Guoan vs. G bits Network Technology | CITIC Guoan vs. Beijing Roborock 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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