Correlation Between Road Environment and Citic Guoan
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By analyzing existing cross correlation between Road Environment Technology and Citic Guoan Wine, you can compare the effects of market volatilities on Road Environment 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 Road Environment with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Road Environment and Citic Guoan.
Diversification Opportunities for Road Environment and Citic Guoan
0.5 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Road and Citic is 0.5. Overlapping area represents the amount of risk that can be diversified away by holding Road Environment Technology 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 Road Environment 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 Road Environment 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 Wine has no effect on the direction of Road Environment i.e., Road Environment and Citic Guoan go up and down completely randomly.
Pair Corralation between Road Environment and Citic Guoan
Assuming the 90 days trading horizon Road Environment Technology is expected to under-perform the Citic Guoan. In addition to that, Road Environment is 1.08 times more volatile than Citic Guoan Wine. It trades about -0.06 of its total potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.03 per unit of volatility. If you would invest 800.00 in Citic Guoan Wine on October 29, 2024 and sell it today you would lose (304.00) from holding Citic Guoan Wine or give up 38.0% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Road Environment Technology vs. Citic Guoan Wine
Performance |
| Timeline |
| Road Environment Tec |
| Citic Guoan Wine |
Road Environment and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Road Environment and Citic Guoan
The main advantage of trading using opposite Road Environment and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Road Environment 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.| Road Environment vs. Lontium Semiconductor Corp | Road Environment vs. Shannon Semiconductor Technology | Road Environment vs. Suzhou Oriental Semiconductor | Road Environment vs. Vats Liquor Chain |
| Citic Guoan vs. Offshore Oil Engineering | Citic Guoan vs. Beijing Kingsoft Office | Citic Guoan vs. Jiangsu Phoenix Publishing | Citic Guoan vs. MayAir Technology 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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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