Correlation Between Alphabet and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Alphabet Inc Class C and Citic Guoan Wine, you can compare the effects of market volatilities on Alphabet 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 Alphabet with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Alphabet and Citic Guoan.
Diversification Opportunities for Alphabet and Citic Guoan
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Alphabet and Citic is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding Alphabet Inc Class C 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 Alphabet 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 Alphabet Inc Class C 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 Alphabet i.e., Alphabet and Citic Guoan go up and down completely randomly.
Pair Corralation between Alphabet and Citic Guoan
Given the investment horizon of 90 days Alphabet Inc Class C is expected to generate 0.62 times more return on investment than Citic Guoan. However, Alphabet Inc Class C is 1.61 times less risky than Citic Guoan. It trades about 0.06 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.01 per unit of risk. If you would invest 12,237 in Alphabet Inc Class C on August 31, 2024 and sell it today you would earn a total of 4,812 from holding Alphabet Inc Class C or generate 39.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.99% |
| Values | Daily Returns |
Alphabet Inc Class C vs. Citic Guoan Wine
Performance |
| Timeline |
| Alphabet Class C |
| Citic Guoan Wine |
Alphabet and Citic Guoan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Alphabet and Citic Guoan
The main advantage of trading using opposite Alphabet and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Alphabet 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.The idea behind Alphabet Inc Class C and Citic Guoan Wine pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| Citic Guoan vs. Shuhua Sports Co | Citic Guoan vs. Everdisplay Optronics Shanghai | Citic Guoan vs. Xiandai Investment Co | Citic Guoan vs. Jiangsu Financial Leasing |
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 Analyzer module to analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas.
Other Complementary Tools
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Sectors List of equity sectors categorizing publicly traded companies based on their primary business activities | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules |