Correlation Between Goodwill E and Citic Offshore
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By analyzing existing cross correlation between Goodwill E Health and Citic Offshore Helicopter, you can compare the effects of market volatilities on Goodwill E and Citic Offshore 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 Goodwill E with a short position of Citic Offshore. Check out your portfolio center. Please also check ongoing floating volatility patterns of Goodwill E and Citic Offshore.
Diversification Opportunities for Goodwill E and Citic Offshore
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Goodwill and Citic is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Goodwill E Health and Citic Offshore Helicopter in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Citic Offshore Helicopter and Goodwill E 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 Goodwill E Health are associated (or correlated) with Citic Offshore. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Citic Offshore Helicopter has no effect on the direction of Goodwill E i.e., Goodwill E and Citic Offshore go up and down completely randomly.
Pair Corralation between Goodwill E and Citic Offshore
Assuming the 90 days trading horizon Goodwill E is expected to generate 3.27 times less return on investment than Citic Offshore. But when comparing it to its historical volatility, Goodwill E Health is 1.07 times less risky than Citic Offshore. It trades about 0.04 of its potential returns per unit of risk. Citic Offshore Helicopter is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 883.00 in Citic Offshore Helicopter on October 29, 2024 and sell it today you would earn a total of 1,502 from holding Citic Offshore Helicopter or generate 170.1% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Goodwill E Health vs. Citic Offshore Helicopter
Performance |
| Timeline |
| Goodwill E Health |
| Citic Offshore Helicopter |
Goodwill E and Citic Offshore Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Goodwill E and Citic Offshore
The main advantage of trading using opposite Goodwill E and Citic Offshore positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Goodwill E position performs unexpectedly, Citic Offshore 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 Offshore will offset losses from the drop in Citic Offshore's long position.| Goodwill E vs. Sichuan Yahua Industrial | Goodwill E vs. Fujian Newland Computer | Goodwill E vs. Hengli Industrial Development | Goodwill E vs. Chengtun Mining Group |
| Citic Offshore vs. Linewell Software Co | Citic Offshore vs. Haima Automobile Group | Citic Offshore vs. Beijing Bewinner Communications | Citic Offshore vs. Songz Automobile Air |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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