Correlation Between Shanghai Yaoji and CITIC Metal
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By analyzing existing cross correlation between Shanghai Yaoji Playing and CITIC Metal Co, you can compare the effects of market volatilities on Shanghai Yaoji 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 Shanghai Yaoji with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Yaoji and CITIC Metal.
Diversification Opportunities for Shanghai Yaoji and CITIC Metal
0.27 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Shanghai and CITIC is 0.27. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Yaoji Playing and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Shanghai Yaoji 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 Shanghai Yaoji Playing 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 Shanghai Yaoji i.e., Shanghai Yaoji and CITIC Metal go up and down completely randomly.
Pair Corralation between Shanghai Yaoji and CITIC Metal
Assuming the 90 days trading horizon Shanghai Yaoji Playing is expected to under-perform the CITIC Metal. In addition to that, Shanghai Yaoji is 2.51 times more volatile than CITIC Metal Co. It trades about -0.48 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.47 per unit of volatility. If you would invest 792.00 in CITIC Metal Co on October 12, 2024 and sell it today you would lose (87.00) from holding CITIC Metal Co or give up 10.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Yaoji Playing vs. CITIC Metal Co
Performance |
| Timeline |
| Shanghai Yaoji Playing |
| CITIC Metal |
Shanghai Yaoji and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Yaoji and CITIC Metal
The main advantage of trading using opposite Shanghai Yaoji and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Yaoji 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.| Shanghai Yaoji vs. Luyin Investment Group | Shanghai Yaoji vs. Sportsoul Co Ltd | Shanghai Yaoji vs. Hunan Investment Group | Shanghai Yaoji vs. Bus Online Co |
| CITIC Metal vs. Shanghai Yaoji Playing | CITIC Metal vs. Shuhua Sports Co | CITIC Metal vs. Guocheng Mining Co | CITIC Metal vs. Beijing HuaYuanYiTong Thermal |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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