Correlation Between Chenzhou Jingui and Citic Guoan
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By analyzing existing cross correlation between Chenzhou Jingui Silver and Citic Guoan Wine, you can compare the effects of market volatilities on Chenzhou Jingui 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 Chenzhou Jingui with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chenzhou Jingui and Citic Guoan.
Diversification Opportunities for Chenzhou Jingui and Citic Guoan
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Chenzhou and Citic is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Chenzhou Jingui Silver 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 Chenzhou Jingui 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 Chenzhou Jingui Silver 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 Chenzhou Jingui i.e., Chenzhou Jingui and Citic Guoan go up and down completely randomly.
Pair Corralation between Chenzhou Jingui and Citic Guoan
Assuming the 90 days trading horizon Chenzhou Jingui Silver is expected to generate 1.11 times more return on investment than Citic Guoan. However, Chenzhou Jingui is 1.11 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 0.13 per unit of risk. If you would invest 299.00 in Chenzhou Jingui Silver on September 24, 2024 and sell it today you would earn a total of 73.00 from holding Chenzhou Jingui Silver or generate 24.41% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Chenzhou Jingui Silver vs. Citic Guoan Wine
Performance |
Timeline |
Chenzhou Jingui Silver |
Citic Guoan Wine |
Chenzhou Jingui and Citic Guoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Chenzhou Jingui and Citic Guoan
The main advantage of trading using opposite Chenzhou Jingui and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chenzhou Jingui 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.Chenzhou Jingui vs. Zijin Mining Group | Chenzhou Jingui vs. Wanhua Chemical Group | Chenzhou Jingui vs. Baoshan Iron Steel | Chenzhou Jingui vs. Shandong Gold Mining |
Citic Guoan vs. Huaibei Mining Holdings | Citic Guoan vs. Zhejiang Kingland Pipeline | Citic Guoan vs. Tianjin Silvery Dragon | Citic Guoan vs. Zhejiang Qianjiang Motorcycle |
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 Stocks Directory module to find actively traded stocks across global markets.
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