Correlation Between Leaguer Shenzhen and CITIC Guoan
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By analyzing existing cross correlation between Leaguer Shenzhen MicroElectronics and CITIC Guoan Information, you can compare the effects of market volatilities on Leaguer Shenzhen 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 Leaguer Shenzhen with a short position of CITIC Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Leaguer Shenzhen and CITIC Guoan.
Diversification Opportunities for Leaguer Shenzhen and CITIC Guoan
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Leaguer and CITIC is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding Leaguer Shenzhen MicroElectron 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 Leaguer Shenzhen 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 Leaguer Shenzhen MicroElectronics 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 Leaguer Shenzhen i.e., Leaguer Shenzhen and CITIC Guoan go up and down completely randomly.
Pair Corralation between Leaguer Shenzhen and CITIC Guoan
Assuming the 90 days trading horizon Leaguer Shenzhen MicroElectronics is expected to under-perform the CITIC Guoan. But the stock apears to be less risky and, when comparing its historical volatility, Leaguer Shenzhen MicroElectronics is 1.13 times less risky than CITIC Guoan. The stock trades about -0.05 of its potential returns per unit of risk. The CITIC Guoan Information is currently generating about -0.04 of returns per unit of risk over similar time horizon. If you would invest 383.00 in CITIC Guoan Information on September 14, 2024 and sell it today you would lose (11.00) from holding CITIC Guoan Information or give up 2.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Leaguer Shenzhen MicroElectron vs. CITIC Guoan Information
Performance |
| Timeline |
| Leaguer Shenzhen Mic |
| CITIC Guoan Information |
Leaguer Shenzhen and CITIC Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Leaguer Shenzhen and CITIC Guoan
The main advantage of trading using opposite Leaguer Shenzhen and CITIC Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Leaguer Shenzhen 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.| Leaguer Shenzhen vs. Nanjing Putian Telecommunications | Leaguer Shenzhen vs. Tianjin Realty Development | Leaguer Shenzhen vs. Kangyue Technology Co | Leaguer Shenzhen vs. Shenzhen Hifuture Electric |
| CITIC Guoan vs. Tongding Interconnection Information | CITIC Guoan vs. Leaguer Shenzhen MicroElectronics | CITIC Guoan vs. Datang HuaYin Electric | CITIC Guoan vs. Focus Media Information |
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 Stock Tickers module to use high-impact, comprehensive, and customizable stock tickers that can be easily integrated to any websites.
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