Correlation Between Zhonghong Pulin and Citic Guoan
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By analyzing existing cross correlation between Zhonghong Pulin Medical and Citic Guoan Wine, you can compare the effects of market volatilities on Zhonghong Pulin 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 Zhonghong Pulin with a short position of Citic Guoan. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhonghong Pulin and Citic Guoan.
Diversification Opportunities for Zhonghong Pulin and Citic Guoan
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhonghong and Citic is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Zhonghong Pulin Medical 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 Zhonghong Pulin 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 Zhonghong Pulin Medical 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 Zhonghong Pulin i.e., Zhonghong Pulin and Citic Guoan go up and down completely randomly.
Pair Corralation between Zhonghong Pulin and Citic Guoan
Assuming the 90 days trading horizon Zhonghong Pulin Medical is expected to generate 1.51 times more return on investment than Citic Guoan. However, Zhonghong Pulin is 1.51 times more volatile than Citic Guoan Wine. It trades about 0.11 of its potential returns per unit of risk. Citic Guoan Wine is currently generating about 0.08 per unit of risk. If you would invest 1,048 in Zhonghong Pulin Medical on September 25, 2024 and sell it today you would earn a total of 307.00 from holding Zhonghong Pulin Medical or generate 29.29% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 98.33% |
Values | Daily Returns |
Zhonghong Pulin Medical vs. Citic Guoan Wine
Performance |
Timeline |
Zhonghong Pulin Medical |
Citic Guoan Wine |
Zhonghong Pulin and Citic Guoan Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Zhonghong Pulin and Citic Guoan
The main advantage of trading using opposite Zhonghong Pulin and Citic Guoan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhonghong Pulin 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.Zhonghong Pulin vs. New China Life | Zhonghong Pulin vs. Ming Yang Smart | Zhonghong Pulin vs. 159681 | Zhonghong Pulin vs. 159005 |
Citic Guoan vs. Anhui Huaren Health | Citic Guoan vs. Lotus Health Group | Citic Guoan vs. Zhonghong Pulin Medical | Citic Guoan vs. Winner Medical Co |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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