Correlation Between Jonjee Hi and CITIC Metal
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By analyzing existing cross correlation between Jonjee Hi tech Industrial and CITIC Metal Co, you can compare the effects of market volatilities on Jonjee Hi 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 Jonjee Hi with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jonjee Hi and CITIC Metal.
Diversification Opportunities for Jonjee Hi and CITIC Metal
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Jonjee and CITIC is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Jonjee Hi tech Industrial and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Jonjee Hi 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 Jonjee Hi tech Industrial 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 Jonjee Hi i.e., Jonjee Hi and CITIC Metal go up and down completely randomly.
Pair Corralation between Jonjee Hi and CITIC Metal
Assuming the 90 days trading horizon Jonjee Hi tech Industrial is expected to under-perform the CITIC Metal. In addition to that, Jonjee Hi is 1.7 times more volatile than CITIC Metal Co. It trades about -0.16 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.13 per unit of volatility. If you would invest 804.00 in CITIC Metal Co on August 28, 2024 and sell it today you would lose (33.00) from holding CITIC Metal Co or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Jonjee Hi tech Industrial vs. CITIC Metal Co
Performance |
| Timeline |
| Jonjee Hi tech |
| CITIC Metal |
Jonjee Hi and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jonjee Hi and CITIC Metal
The main advantage of trading using opposite Jonjee Hi and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jonjee Hi 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.| Jonjee Hi vs. China Petroleum Chemical | Jonjee Hi vs. PetroChina Co Ltd | Jonjee Hi vs. China State Construction | Jonjee Hi vs. China Railway Group |
| 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 Commodity Directory module to find actively traded commodities issued by global exchanges.
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