Correlation Between Citic Guoan and Anhui Deli
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By analyzing existing cross correlation between Citic Guoan Wine and Anhui Deli Household, you can compare the effects of market volatilities on Citic Guoan and Anhui Deli 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 Anhui Deli. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Guoan and Anhui Deli.
Diversification Opportunities for Citic Guoan and Anhui Deli
0.79 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Citic and Anhui is 0.79. Overlapping area represents the amount of risk that can be diversified away by holding Citic Guoan Wine and Anhui Deli Household in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Deli Household 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 Wine are associated (or correlated) with Anhui Deli. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Deli Household has no effect on the direction of Citic Guoan i.e., Citic Guoan and Anhui Deli go up and down completely randomly.
Pair Corralation between Citic Guoan and Anhui Deli
Assuming the 90 days trading horizon Citic Guoan Wine is expected to generate 0.83 times more return on investment than Anhui Deli. However, Citic Guoan Wine is 1.2 times less risky than Anhui Deli. It trades about -0.01 of its potential returns per unit of risk. Anhui Deli Household is currently generating about -0.02 per unit of risk. If you would invest 683.00 in Citic Guoan Wine on October 9, 2024 and sell it today you would lose (191.00) from holding Citic Guoan Wine or give up 27.96% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
Citic Guoan Wine vs. Anhui Deli Household
Performance |
Timeline |
Citic Guoan Wine |
Anhui Deli Household |
Citic Guoan and Anhui Deli Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Citic Guoan and Anhui Deli
The main advantage of trading using opposite Citic Guoan and Anhui Deli positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Guoan position performs unexpectedly, Anhui Deli 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 Anhui Deli will offset losses from the drop in Anhui Deli's long position.Citic Guoan vs. Jointo Energy Investment | Citic Guoan vs. Zhejiang Construction Investment | Citic Guoan vs. Zoje Resources Investment | Citic Guoan vs. Zhongrun Resources Investment |
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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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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