Correlation Between Dongnan Electronics and CITIC Metal
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By analyzing existing cross correlation between Dongnan Electronics Co and CITIC Metal Co, you can compare the effects of market volatilities on Dongnan Electronics 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 Dongnan Electronics with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Dongnan Electronics and CITIC Metal.
Diversification Opportunities for Dongnan Electronics and CITIC Metal
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Dongnan and CITIC is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Dongnan Electronics Co and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Dongnan Electronics 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 Dongnan Electronics Co 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 Dongnan Electronics i.e., Dongnan Electronics and CITIC Metal go up and down completely randomly.
Pair Corralation between Dongnan Electronics and CITIC Metal
Assuming the 90 days trading horizon Dongnan Electronics Co is expected to generate 1.74 times more return on investment than CITIC Metal. However, Dongnan Electronics is 1.74 times more volatile than CITIC Metal Co. It trades about 0.02 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.01 per unit of risk. If you would invest 2,450 in Dongnan Electronics Co on August 26, 2024 and sell it today you would lose (117.00) from holding Dongnan Electronics Co or give up 4.78% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Dongnan Electronics Co vs. CITIC Metal Co
Performance |
| Timeline |
| Dongnan Electronics |
| CITIC Metal |
Dongnan Electronics and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Dongnan Electronics and CITIC Metal
The main advantage of trading using opposite Dongnan Electronics and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Dongnan Electronics 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.| Dongnan Electronics vs. Kweichow Moutai Co | Dongnan Electronics vs. Shenzhen Mindray Bio Medical | Dongnan Electronics vs. Jiangsu Pacific Quartz | Dongnan Electronics vs. G bits Network Technology |
| 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 Positions Ratings module to determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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