Correlation Between CITIC Guoan and Western Metal
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By analyzing existing cross correlation between CITIC Guoan Information and Western Metal Materials, you can compare the effects of market volatilities on CITIC Guoan and Western 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 CITIC Guoan with a short position of Western Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Guoan and Western Metal.
Diversification Opportunities for CITIC Guoan and Western Metal
-0.44 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITIC and Western is -0.44. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Guoan Information and Western Metal Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Western Metal Materials and CITIC Guoan 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 Guoan Information are associated (or correlated) with Western Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Western Metal Materials has no effect on the direction of CITIC Guoan i.e., CITIC Guoan and Western Metal go up and down completely randomly.
Pair Corralation between CITIC Guoan and Western Metal
Assuming the 90 days trading horizon CITIC Guoan Information is expected to generate 1.19 times more return on investment than Western Metal. However, CITIC Guoan is 1.19 times more volatile than Western Metal Materials. It trades about 0.06 of its potential returns per unit of risk. Western Metal Materials is currently generating about 0.04 per unit of risk. If you would invest 220.00 in CITIC Guoan Information on November 3, 2024 and sell it today you would earn a total of 68.00 from holding CITIC Guoan Information or generate 30.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Guoan Information vs. Western Metal Materials
Performance |
| Timeline |
| CITIC Guoan Information |
| Western Metal Materials |
CITIC Guoan and Western Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Guoan and Western Metal
The main advantage of trading using opposite CITIC Guoan and Western Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Guoan position performs unexpectedly, Western 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 Western Metal will offset losses from the drop in Western Metal's long position.| CITIC Guoan vs. PetroChina Co Ltd | CITIC Guoan vs. Industrial and Commercial | CITIC Guoan vs. China Petroleum Chemical | CITIC Guoan vs. China Construction Bank |
| Western Metal vs. Kingclean Electric Co | Western Metal vs. Hangzhou Zhongya Machinery | Western Metal vs. Guangzhou KDT Machinery | Western Metal vs. Masterwork Machinery |
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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