Correlation Between Shandong Ruifeng and CITIC Metal
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By analyzing existing cross correlation between Shandong Ruifeng Chemical and CITIC Metal Co, you can compare the effects of market volatilities on Shandong Ruifeng 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 Shandong Ruifeng with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Ruifeng and CITIC Metal.
Diversification Opportunities for Shandong Ruifeng and CITIC Metal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shandong and CITIC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Ruifeng Chemical and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Shandong Ruifeng 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 Shandong Ruifeng Chemical 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 Shandong Ruifeng i.e., Shandong Ruifeng and CITIC Metal go up and down completely randomly.
Pair Corralation between Shandong Ruifeng and CITIC Metal
Assuming the 90 days trading horizon Shandong Ruifeng Chemical is expected to generate 1.86 times more return on investment than CITIC Metal. However, Shandong Ruifeng is 1.86 times more volatile than CITIC Metal Co. It trades about 0.04 of its potential returns per unit of risk. CITIC Metal Co is currently generating about 0.02 per unit of risk. If you would invest 943.00 in Shandong Ruifeng Chemical on September 4, 2024 and sell it today you would earn a total of 202.00 from holding Shandong Ruifeng Chemical or generate 21.42% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Ruifeng Chemical vs. CITIC Metal Co
Performance |
| Timeline |
| Shandong Ruifeng Chemical |
| CITIC Metal |
Shandong Ruifeng and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Ruifeng and CITIC Metal
The main advantage of trading using opposite Shandong Ruifeng and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Ruifeng 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.| Shandong Ruifeng vs. CITIC Metal Co | Shandong Ruifeng vs. Shanghai Yanpu Metal | Shandong Ruifeng vs. Hangzhou Pinming Software | Shandong Ruifeng vs. Inspur Software Co |
| CITIC Metal vs. Zhongtong Guomai Communication | CITIC Metal vs. Yindu Kitchen Equipment | CITIC Metal vs. Zhejiang JIULI Hi tech | CITIC Metal vs. Marssenger Kitchenware 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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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