Correlation Between Yonyou Auto and CITIC Guoan
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By analyzing existing cross correlation between Yonyou Auto Information and CITIC Guoan Information, you can compare the effects of market volatilities on Yonyou Auto 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 Yonyou Auto with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Yonyou Auto and CITIC Guoan.
Diversification Opportunities for Yonyou Auto and CITIC Guoan
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Yonyou and CITIC is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Yonyou Auto Information 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 Yonyou Auto 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 Yonyou Auto Information 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 Yonyou Auto i.e., Yonyou Auto and CITIC Guoan go up and down completely randomly.
Pair Corralation between Yonyou Auto and CITIC Guoan
Assuming the 90 days trading horizon Yonyou Auto Information is expected to generate 0.61 times more return on investment than CITIC Guoan. However, Yonyou Auto Information is 1.63 times less risky than CITIC Guoan. It trades about 0.17 of its potential returns per unit of risk. CITIC Guoan Information is currently generating about 0.06 per unit of risk. If you would invest 1,833 in Yonyou Auto Information on September 3, 2024 and sell it today you would earn a total of 145.00 from holding Yonyou Auto Information or generate 7.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Yonyou Auto Information vs. CITIC Guoan Information
Performance |
| Timeline |
| Yonyou Auto Information |
| CITIC Guoan Information |
Yonyou Auto and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Yonyou Auto and CITIC Guoan
The main advantage of trading using opposite Yonyou Auto and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Yonyou Auto 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.| Yonyou Auto vs. Agricultural Bank of | Yonyou Auto vs. China Construction Bank | Yonyou Auto vs. Postal Savings Bank | Yonyou Auto vs. Bank of Communications |
| CITIC Guoan vs. Gansu Jiu Steel | CITIC Guoan vs. Ming Yang Smart | CITIC Guoan vs. Aba Chemicals Corp | CITIC Guoan vs. Loctek Ergonomic 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 Technical Analysis module to check basic technical indicators and analysis based on most latest market data.
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