Correlation Between Citic Offshore and Advanced Technology
Specify exactly 2 symbols:
By analyzing existing cross correlation between Citic Offshore Helicopter and Advanced Technology Materials, you can compare the effects of market volatilities on Citic Offshore and Advanced Technology 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 Offshore with a short position of Advanced Technology. Check out your portfolio center. Please also check ongoing floating volatility patterns of Citic Offshore and Advanced Technology.
Diversification Opportunities for Citic Offshore and Advanced Technology
0.58 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Citic and Advanced is 0.58. Overlapping area represents the amount of risk that can be diversified away by holding Citic Offshore Helicopter and Advanced Technology Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Advanced Technology and Citic Offshore 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 Offshore Helicopter are associated (or correlated) with Advanced Technology. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Advanced Technology has no effect on the direction of Citic Offshore i.e., Citic Offshore and Advanced Technology go up and down completely randomly.
Pair Corralation between Citic Offshore and Advanced Technology
Assuming the 90 days trading horizon Citic Offshore Helicopter is expected to under-perform the Advanced Technology. In addition to that, Citic Offshore is 1.29 times more volatile than Advanced Technology Materials. It trades about -0.01 of its total potential returns per unit of risk. Advanced Technology Materials is currently generating about 0.09 per unit of volatility. If you would invest 1,130 in Advanced Technology Materials on October 24, 2024 and sell it today you would earn a total of 56.00 from holding Advanced Technology Materials or generate 4.96% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Citic Offshore Helicopter vs. Advanced Technology Materials
Performance |
| Timeline |
| Citic Offshore Helicopter |
| Advanced Technology |
Citic Offshore and Advanced Technology Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Citic Offshore and Advanced Technology
The main advantage of trading using opposite Citic Offshore and Advanced Technology positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Citic Offshore position performs unexpectedly, Advanced Technology 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 Advanced Technology will offset losses from the drop in Advanced Technology's long position.| Citic Offshore vs. Ningbo Tech Bank Co | Citic Offshore vs. Unisplendour Corp | Citic Offshore vs. GRG Banking Equipment | Citic Offshore vs. Industrial Bank Co |
| Advanced Technology vs. Hefei Metalforming Mach | Advanced Technology vs. North Copper Shanxi | Advanced Technology vs. Citic Offshore Helicopter | Advanced Technology vs. Marssenger Kitchenware 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
Other Complementary Tools
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing |