Correlation Between Zhejiang JIULI and CITIC Metal
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By analyzing existing cross correlation between Zhejiang JIULI Hi tech and CITIC Metal Co, you can compare the effects of market volatilities on Zhejiang JIULI 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 Zhejiang JIULI with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhejiang JIULI and CITIC Metal.
Diversification Opportunities for Zhejiang JIULI and CITIC Metal
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Zhejiang and CITIC is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Zhejiang JIULI Hi tech and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Zhejiang JIULI 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 Zhejiang JIULI Hi tech 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 Zhejiang JIULI i.e., Zhejiang JIULI and CITIC Metal go up and down completely randomly.
Pair Corralation between Zhejiang JIULI and CITIC Metal
Assuming the 90 days trading horizon Zhejiang JIULI Hi tech is expected to generate 1.61 times more return on investment than CITIC Metal. However, Zhejiang JIULI is 1.61 times more volatile than CITIC Metal Co. It trades about 0.16 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.21 per unit of risk. If you would invest 2,253 in Zhejiang JIULI Hi tech on September 12, 2024 and sell it today you would earn a total of 156.00 from holding Zhejiang JIULI Hi tech or generate 6.92% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhejiang JIULI Hi tech vs. CITIC Metal Co
Performance |
| Timeline |
| Zhejiang JIULI Hi |
| CITIC Metal |
Zhejiang JIULI and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhejiang JIULI and CITIC Metal
The main advantage of trading using opposite Zhejiang JIULI and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhejiang JIULI 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.| Zhejiang JIULI vs. Zijin Mining Group | Zhejiang JIULI vs. Wanhua Chemical Group | Zhejiang JIULI vs. Baoshan Iron Steel | Zhejiang JIULI 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. Rongsheng Petrochemical Co |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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