Correlation Between Hygon Information and CITIC Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hygon Information Technology and CITIC Guoan Information, you can compare the effects of market volatilities on Hygon Information 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 Hygon Information with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hygon Information and CITIC Guoan.
Diversification Opportunities for Hygon Information and CITIC Guoan
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hygon and CITIC is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Hygon Information Technology 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 Hygon Information 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 Hygon Information Technology 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 Hygon Information i.e., Hygon Information and CITIC Guoan go up and down completely randomly.
Pair Corralation between Hygon Information and CITIC Guoan
Assuming the 90 days trading horizon Hygon Information Technology is expected to generate 1.57 times more return on investment than CITIC Guoan. However, Hygon Information is 1.57 times more volatile than CITIC Guoan Information. It trades about 0.08 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.02 per unit of risk. If you would invest 4,411 in Hygon Information Technology on October 16, 2024 and sell it today you would earn a total of 9,929 from holding Hygon Information Technology or generate 225.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Hygon Information Technology vs. CITIC Guoan Information
Performance |
| Timeline |
| Hygon Information |
| CITIC Guoan Information |
Hygon Information and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hygon Information and CITIC Guoan
The main advantage of trading using opposite Hygon Information and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hygon Information 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.| Hygon Information vs. Songz Automobile Air | Hygon Information vs. Rising Nonferrous Metals | Hygon Information vs. Anhui Jianghuai Automobile | Hygon Information vs. Telling Telecommunication Holding |
| CITIC Guoan vs. Runjian Communication Co | CITIC Guoan vs. FSPG Hi Tech Co | CITIC Guoan vs. Shenzhen Bioeasy Biotechnology | CITIC Guoan vs. Tianjin Hi Tech Development |
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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |