Correlation Between CITIC Metal and Sunwave Communications
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By analyzing existing cross correlation between CITIC Metal Co and Sunwave Communications Co, you can compare the effects of market volatilities on CITIC Metal and Sunwave Communications 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 Sunwave Communications. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Sunwave Communications.
Diversification Opportunities for CITIC Metal and Sunwave Communications
-0.21 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITIC and Sunwave is -0.21. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Sunwave Communications Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sunwave Communications 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 Sunwave Communications. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sunwave Communications has no effect on the direction of CITIC Metal i.e., CITIC Metal and Sunwave Communications go up and down completely randomly.
Pair Corralation between CITIC Metal and Sunwave Communications
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.21 times more return on investment than Sunwave Communications. However, CITIC Metal Co is 4.66 times less risky than Sunwave Communications. It trades about -0.47 of its potential returns per unit of risk. Sunwave Communications Co is currently generating about -0.22 per unit of risk. 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 Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Sunwave Communications Co
Performance |
| Timeline |
| CITIC Metal |
| Sunwave Communications |
CITIC Metal and Sunwave Communications Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Sunwave Communications
The main advantage of trading using opposite CITIC Metal and Sunwave Communications positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Sunwave Communications 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 Sunwave Communications will offset losses from the drop in Sunwave Communications' long position.| CITIC Metal vs. Shanghai Yaoji Playing | CITIC Metal vs. Shuhua Sports Co | CITIC Metal vs. Guocheng Mining Co | CITIC Metal vs. Beijing HuaYuanYiTong Thermal |
| Sunwave Communications vs. Zhejiang Yongjin Metal | Sunwave Communications vs. Runjian Communication Co | Sunwave Communications vs. Tongling Nonferrous Metals | Sunwave Communications 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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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