Correlation Between Tongling Nonferrous and CITIC Metal
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By analyzing existing cross correlation between Tongling Nonferrous Metals and CITIC Metal Co, you can compare the effects of market volatilities on Tongling Nonferrous 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 Tongling Nonferrous with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tongling Nonferrous and CITIC Metal.
Diversification Opportunities for Tongling Nonferrous and CITIC Metal
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Tongling and CITIC is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding Tongling Nonferrous Metals and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Tongling Nonferrous 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 Tongling Nonferrous Metals 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 Tongling Nonferrous i.e., Tongling Nonferrous and CITIC Metal go up and down completely randomly.
Pair Corralation between Tongling Nonferrous and CITIC Metal
Assuming the 90 days trading horizon Tongling Nonferrous Metals is expected to generate 0.78 times more return on investment than CITIC Metal. However, Tongling Nonferrous Metals is 1.28 times less risky than CITIC Metal. It trades about 0.01 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.02 per unit of risk. If you would invest 315.00 in Tongling Nonferrous Metals on August 31, 2024 and sell it today you would earn a total of 11.00 from holding Tongling Nonferrous Metals or generate 3.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 83.61% |
| Values | Daily Returns |
Tongling Nonferrous Metals vs. CITIC Metal Co
Performance |
| Timeline |
| Tongling Nonferrous |
| CITIC Metal |
Tongling Nonferrous and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tongling Nonferrous and CITIC Metal
The main advantage of trading using opposite Tongling Nonferrous and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tongling Nonferrous 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.| Tongling Nonferrous vs. Zijin Mining Group | Tongling Nonferrous vs. Baoshan Iron Steel | Tongling Nonferrous vs. Rongsheng Petrochemical Co | Tongling Nonferrous vs. Hoshine Silicon Ind |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Rongsheng Petrochemical Co | CITIC Metal vs. Hoshine Silicon Ind |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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