Correlation Between Piotech and Citic Guoan
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By analyzing existing cross correlation between Piotech Inc A and Citic Guoan Wine, you can compare the effects of market volatilities on Piotech 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 Piotech with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Piotech and Citic Guoan.
Diversification Opportunities for Piotech and Citic Guoan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Piotech and Citic is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Piotech Inc A and Citic Guoan Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Guoan Wine and Piotech 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 Piotech Inc A 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 Wine has no effect on the direction of Piotech i.e., Piotech and Citic Guoan go up and down completely randomly.
Pair Corralation between Piotech and Citic Guoan
Assuming the 90 days trading horizon Piotech Inc A is expected to under-perform the Citic Guoan. In addition to that, Piotech is 1.51 times more volatile than Citic Guoan Wine. It trades about -0.27 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.12 per unit of volatility. If you would invest 624.00 in Citic Guoan Wine on September 14, 2024 and sell it today you would earn a total of 30.00 from holding Citic Guoan Wine or generate 4.81% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Piotech Inc A vs. Citic Guoan Wine
Performance |
| Timeline |
| Piotech Inc A |
| Citic Guoan Wine |
Piotech and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Piotech and Citic Guoan
The main advantage of trading using opposite Piotech and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Piotech 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.| Piotech vs. Wuhan Hvsen Biotechnology | Piotech vs. Dongfeng Automobile Co | Piotech vs. Shanghai Rendu Biotechnology | Piotech vs. Anhui Deli Household |
| Citic Guoan vs. China Life Insurance | Citic Guoan vs. Cinda Securities Co | Citic Guoan vs. Piotech Inc A | Citic Guoan vs. Dongxing Sec 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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
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