Correlation Between CITIC Metal and Luzhou Lao
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Metal Co and Luzhou Lao Jiao, you can compare the effects of market volatilities on CITIC Metal and Luzhou Lao 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 CITIC Metal with a short position of Luzhou Lao. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Luzhou Lao.
Diversification Opportunities for CITIC Metal and Luzhou Lao
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Luzhou is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Luzhou Lao Jiao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luzhou Lao Jiao and CITIC Metal 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 CITIC Metal Co are associated (or correlated) with Luzhou Lao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luzhou Lao Jiao has no effect on the direction of CITIC Metal i.e., CITIC Metal and Luzhou Lao go up and down completely randomly.
Pair Corralation between CITIC Metal and Luzhou Lao
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 1.09 times more return on investment than Luzhou Lao. However, CITIC Metal is 1.09 times more volatile than Luzhou Lao Jiao. It trades about -0.02 of its potential returns per unit of risk. Luzhou Lao Jiao is currently generating about -0.05 per unit of risk. If you would invest 1,082 in CITIC Metal Co on August 24, 2024 and sell it today you would lose (302.00) from holding CITIC Metal Co or give up 27.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 98.99% |
| Values | Daily Returns |
CITIC Metal Co vs. Luzhou Lao Jiao
Performance |
| Timeline |
| CITIC Metal |
| Luzhou Lao Jiao |
CITIC Metal and Luzhou Lao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Luzhou Lao
The main advantage of trading using opposite CITIC Metal and Luzhou Lao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Luzhou Lao 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 Luzhou Lao will offset losses from the drop in Luzhou Lao's long position.| CITIC Metal vs. Hainan Haiqi Transportation | CITIC Metal vs. Sichuan Fulin Transportation | CITIC Metal vs. Liaoning Dingjide Petrochemical | CITIC Metal vs. Hubeiyichang Transportation Group |
| Luzhou Lao vs. Zhejiang Yayi Metal | Luzhou Lao vs. Shandong Mining Machinery | Luzhou Lao vs. Sinosteel Luonai Materials | Luzhou Lao vs. CITIC Metal 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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
Other Complementary Tools
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| CEOs Directory Screen CEOs from public companies around the world |