Correlation Between Zhejiang Qianjiang and Citic Guoan
Specify exactly 2 symbols:
By analyzing existing cross correlation between Zhejiang Qianjiang Motorcycle and Citic Guoan Wine, you can compare the effects of market volatilities on Zhejiang Qianjiang 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 Zhejiang Qianjiang with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang Qianjiang and Citic Guoan.
Diversification Opportunities for Zhejiang Qianjiang and Citic Guoan
-0.43 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Zhejiang and Citic is -0.43. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang 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 Zhejiang Qianjiang Motorcycle 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 Zhejiang Qianjiang i.e., Zhejiang Qianjiang and Citic Guoan go up and down completely randomly.
Pair Corralation between Zhejiang Qianjiang and Citic Guoan
Assuming the 90 days trading horizon Zhejiang Qianjiang Motorcycle is expected to generate 1.04 times more return on investment than Citic Guoan. However, Zhejiang Qianjiang is 1.04 times more volatile than Citic Guoan Wine. It trades about 0.13 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about -0.35 per unit of risk. If you would invest 1,706 in Zhejiang Qianjiang Motorcycle on October 12, 2024 and sell it today you would earn a total of 133.00 from holding Zhejiang Qianjiang Motorcycle or generate 7.8% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Zhejiang Qianjiang Motorcycle vs. Citic Guoan Wine
Performance |
Timeline |
Zhejiang Qianjiang |
Citic Guoan Wine |
Zhejiang Qianjiang and Citic Guoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhejiang Qianjiang and Citic Guoan
The main advantage of trading using opposite Zhejiang Qianjiang and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang Qianjiang 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.Zhejiang Qianjiang vs. Western Metal Materials | Zhejiang Qianjiang vs. Ningbo Jintian Copper | Zhejiang Qianjiang vs. Beijing HuaYuanYiTong Thermal | Zhejiang Qianjiang vs. Anhui Tongguan Copper |
Citic Guoan vs. Ingenic Semiconductor | Citic Guoan vs. GRINM Semiconductor Materials | Citic Guoan vs. StarPower Semiconductor | Citic Guoan vs. Giantec Semiconductor 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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
Latest Portfolios Quick portfolio dashboard that showcases your latest portfolios | |
Share Portfolio Track or share privately all of your investments from the convenience of any device | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |