Correlation Between CITIC SECURITIES and GWILLI FOOD

Can any of the company-specific risk be diversified away by investing in both CITIC SECURITIES and GWILLI FOOD at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CITIC SECURITIES and GWILLI FOOD into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CITIC SECURITIES H and GWILLI FOOD, you can compare the effects of market volatilities on CITIC SECURITIES and GWILLI FOOD 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 SECURITIES with a short position of GWILLI FOOD. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC SECURITIES and GWILLI FOOD.

Diversification Opportunities for CITIC SECURITIES and GWILLI FOOD

0.0

Correlation Coefficient

CITIC SECURITIES  GWILLI FOOD

Pay attention - limited upside

The 3 months correlation between CITIC and GWILLI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITIC SECURITIES H and GWILLI FOOD in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GWILLI FOOD and CITIC SECURITIES 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 SECURITIES H are associated (or correlated) with GWILLI FOOD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GWILLI FOOD has no effect on the direction of CITIC SECURITIES i.e., CITIC SECURITIES and GWILLI FOOD go up and down completely randomly.

Pair Corralation between CITIC SECURITIES and GWILLI FOOD

If you would invest  1,550  in GWILLI FOOD on October 26, 2024 and sell it today you would earn a total of  10.00  from holding GWILLI FOOD or generate 0.65% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	5.56%
Values	Daily Returns

CITIC SECURITIES H   vs.  GWILLI FOOD

CITIC SECURITIES H

Risk-Adjusted Performance

0 of 100

OK

Over the last 90 days CITIC SECURITIES H has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CITIC SECURITIES is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

GWILLI FOOD

Risk-Adjusted Performance

16 of 100

Good

Compared to the overall equity markets, risk-adjusted returns on investments in GWILLI FOOD are ranked lower than 16 (%) of all global equities and portfolios over the last 90 days. In spite of rather fragile basic indicators, GWILLI FOOD exhibited solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CITIC SECURITIES and GWILLI FOOD

The main advantage of trading using opposite CITIC SECURITIES and GWILLI FOOD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC SECURITIES position performs unexpectedly, GWILLI FOOD 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 GWILLI FOOD will offset losses from the drop in GWILLI FOOD's long position.

The idea behind CITIC SECURITIES H and GWILLI FOOD 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.

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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 Investing Opportunities module to build portfolios using our predefined set of ideas and optimize them against your investing preferences.