Correlation Between CITIC Guoan and Shandong Polymer
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By analyzing existing cross correlation between CITIC Guoan Information and Shandong Polymer Biochemicals, you can compare the effects of market volatilities on CITIC Guoan and Shandong Polymer 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 CITIC Guoan with a short position of Shandong Polymer. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Shandong Polymer.
Diversification Opportunities for CITIC Guoan and Shandong Polymer
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Shandong is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Shandong Polymer Biochemicals in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Polymer Bio and CITIC Guoan 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 CITIC Guoan Information are associated (or correlated) with Shandong Polymer. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Polymer Bio has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Shandong Polymer go up and down completely randomly.
Pair Corralation between CITIC Guoan and Shandong Polymer
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.18 times more return on investment than Shandong Polymer. However, CITIC Guoan is 1.18 times more volatile than Shandong Polymer Biochemicals. It trades about 0.03 of its potential returns per unit of risk. Shandong Polymer Biochemicals is currently generating about -0.01 per unit of risk. If you would invest 342.00 in CITIC Guoan Information on September 22, 2024 and sell it today you would earn a total of 4.00 from holding CITIC Guoan Information or generate 1.17% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CITIC Guoan Information vs. Shandong Polymer Biochemicals
Performance |
Timeline |
CITIC Guoan Information |
Shandong Polymer Bio |
CITIC Guoan and Shandong Polymer Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CITIC Guoan and Shandong Polymer
The main advantage of trading using opposite CITIC Guoan and Shandong Polymer positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Shandong Polymer 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 Shandong Polymer will offset losses from the drop in Shandong Polymer's long position.CITIC Guoan vs. Liaoning Chengda Biotechnology | CITIC Guoan vs. Tongyu Communication | CITIC Guoan vs. Changchun Faway Automobile | CITIC Guoan vs. Eastern Communications Co |
Shandong Polymer vs. CITIC Guoan Information | Shandong Polymer vs. Tengda Construction Group | Shandong Polymer vs. Emdoor Information Co | Shandong Polymer vs. ButOne Information Corp |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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