Correlation Between Guangzhou Dongfang and CITIC Metal
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By analyzing existing cross correlation between Guangzhou Dongfang Hotel and CITIC Metal Co, you can compare the effects of market volatilities on Guangzhou Dongfang and CITIC Metal 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 Guangzhou Dongfang with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Dongfang and CITIC Metal.
Diversification Opportunities for Guangzhou Dongfang and CITIC Metal
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangzhou and CITIC is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Dongfang Hotel and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Guangzhou Dongfang 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 Guangzhou Dongfang Hotel are associated (or correlated) with CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Guangzhou Dongfang i.e., Guangzhou Dongfang and CITIC Metal go up and down completely randomly.
Pair Corralation between Guangzhou Dongfang and CITIC Metal
Assuming the 90 days trading horizon Guangzhou Dongfang Hotel is expected to generate 1.23 times more return on investment than CITIC Metal. However, Guangzhou Dongfang is 1.23 times more volatile than CITIC Metal Co. It trades about -0.03 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.08 per unit of risk. If you would invest 1,012 in Guangzhou Dongfang Hotel on August 29, 2024 and sell it today you would lose (14.00) from holding Guangzhou Dongfang Hotel or give up 1.38% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Dongfang Hotel vs. CITIC Metal Co
Performance |
| Timeline |
| Guangzhou Dongfang Hotel |
| CITIC Metal |
Guangzhou Dongfang and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Dongfang and CITIC Metal
The main advantage of trading using opposite Guangzhou Dongfang and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Dongfang position performs unexpectedly, CITIC Metal 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 Metal will offset losses from the drop in CITIC Metal's long position.| Guangzhou Dongfang vs. Agricultural Bank of | Guangzhou Dongfang vs. Industrial and Commercial | Guangzhou Dongfang vs. Bank of China | Guangzhou Dongfang vs. China Construction Bank |
| CITIC Metal vs. Shandong Gold Mining | CITIC Metal vs. Rongsheng Petrochemical Co | CITIC Metal vs. Inner Mongolia BaoTou | CITIC Metal vs. Jiangxi Ganfeng Lithium |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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