Correlation Between Guangdong Jingyi and CITIC Metal
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By analyzing existing cross correlation between Guangdong Jingyi Metal and CITIC Metal Co, you can compare the effects of market volatilities on Guangdong Jingyi 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 Guangdong Jingyi with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Jingyi and CITIC Metal.
Diversification Opportunities for Guangdong Jingyi and CITIC Metal
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and CITIC is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Jingyi Metal and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Guangdong Jingyi 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 Guangdong Jingyi Metal 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 Guangdong Jingyi i.e., Guangdong Jingyi and CITIC Metal go up and down completely randomly.
Pair Corralation between Guangdong Jingyi and CITIC Metal
Assuming the 90 days trading horizon Guangdong Jingyi Metal is expected to generate 1.92 times more return on investment than CITIC Metal. However, Guangdong Jingyi is 1.92 times more volatile than CITIC Metal Co. It trades about 0.25 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.13 per unit of risk. If you would invest 632.00 in Guangdong Jingyi Metal on August 29, 2024 and sell it today you would earn a total of 94.00 from holding Guangdong Jingyi Metal or generate 14.87% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Jingyi Metal vs. CITIC Metal Co
Performance |
| Timeline |
| Guangdong Jingyi Metal |
| CITIC Metal |
Guangdong Jingyi and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Jingyi and CITIC Metal
The main advantage of trading using opposite Guangdong Jingyi and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Jingyi 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.| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Wanhua Chemical Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical 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 Portfolio Analyzer module to portfolio analysis module that provides access to portfolio diagnostics and optimization engine.
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