Correlation Between Jiangxi Sunshine and CITIC Metal
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By analyzing existing cross correlation between Jiangxi Sunshine Dairy and CITIC Metal Co, you can compare the effects of market volatilities on Jiangxi Sunshine 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 Jiangxi Sunshine with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jiangxi Sunshine and CITIC Metal.
Diversification Opportunities for Jiangxi Sunshine and CITIC Metal
0.33 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Jiangxi and CITIC is 0.33. Overlapping area represents the amount of risk that can be diversified away by holding Jiangxi Sunshine Dairy and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Jiangxi Sunshine 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 Jiangxi Sunshine Dairy 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 Jiangxi Sunshine i.e., Jiangxi Sunshine and CITIC Metal go up and down completely randomly.
Pair Corralation between Jiangxi Sunshine and CITIC Metal
Assuming the 90 days trading horizon Jiangxi Sunshine Dairy is expected to under-perform the CITIC Metal. In addition to that, Jiangxi Sunshine is 1.88 times more volatile than CITIC Metal Co. It trades about -0.1 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.14 per unit of volatility. If you would invest 747.00 in CITIC Metal Co on October 24, 2024 and sell it today you would lose (25.00) from holding CITIC Metal Co or give up 3.35% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jiangxi Sunshine Dairy vs. CITIC Metal Co
Performance |
| Timeline |
| Jiangxi Sunshine Dairy |
| CITIC Metal |
Jiangxi Sunshine and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jiangxi Sunshine and CITIC Metal
The main advantage of trading using opposite Jiangxi Sunshine and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jiangxi Sunshine 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.| Jiangxi Sunshine vs. Gem Year Industrial Co | Jiangxi Sunshine vs. Ningbo Fujia Industrial | Jiangxi Sunshine vs. Guangzhou Haozhi Industrial | Jiangxi Sunshine vs. Guocheng Mining Co |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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