Correlation Between China Citic and JiShi Media
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By analyzing existing cross correlation between China Citic Bank and JiShi Media Co, you can compare the effects of market volatilities on China Citic and JiShi Media 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 China Citic with a short position of JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and JiShi Media.
Diversification Opportunities for China Citic and JiShi Media
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and JiShi is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media and China Citic 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 China Citic Bank are associated (or correlated) with JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of China Citic i.e., China Citic and JiShi Media go up and down completely randomly.
Pair Corralation between China Citic and JiShi Media
Assuming the 90 days trading horizon China Citic is expected to generate 5.89 times less return on investment than JiShi Media. But when comparing it to its historical volatility, China Citic Bank is 2.49 times less risky than JiShi Media. It trades about 0.08 of its potential returns per unit of risk. JiShi Media Co is currently generating about 0.18 of returns per unit of risk over similar time horizon. If you would invest 119.00 in JiShi Media Co on September 24, 2024 and sell it today you would earn a total of 75.00 from holding JiShi Media Co or generate 63.03% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Weak |
Accuracy | 100.0% |
Values | Daily Returns |
China Citic Bank vs. JiShi Media Co
Performance |
Timeline |
China Citic Bank |
JiShi Media |
China Citic and JiShi Media Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Citic and JiShi Media
The main advantage of trading using opposite China Citic and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.China Citic vs. Super Dragon Engineering Plastics | China Citic vs. Sinofibers Technology Co | China Citic vs. Kuangda Technology Group | China Citic vs. Xinke Material |
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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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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