Correlation Between CITIC Metal and GRG Banking
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By analyzing existing cross correlation between CITIC Metal Co and GRG Banking Equipment, you can compare the effects of market volatilities on CITIC Metal and GRG Banking 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 GRG Banking. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and GRG Banking.
Diversification Opportunities for CITIC Metal and GRG Banking
0.53 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITIC and GRG is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and GRG Banking Equipment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on GRG Banking Equipment 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 GRG Banking. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of GRG Banking Equipment has no effect on the direction of CITIC Metal i.e., CITIC Metal and GRG Banking go up and down completely randomly.
Pair Corralation between CITIC Metal and GRG Banking
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.64 times more return on investment than GRG Banking. However, CITIC Metal Co is 1.57 times less risky than GRG Banking. It trades about -0.41 of its potential returns per unit of risk. GRG Banking Equipment is currently generating about -0.46 per unit of risk. If you would invest 786.00 in CITIC Metal Co on October 11, 2024 and sell it today you would lose (81.00) from holding CITIC Metal Co or give up 10.31% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. GRG Banking Equipment
Performance |
| Timeline |
| CITIC Metal |
| GRG Banking Equipment |
CITIC Metal and GRG Banking Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and GRG Banking
The main advantage of trading using opposite CITIC Metal and GRG Banking positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, GRG Banking 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 GRG Banking will offset losses from the drop in GRG Banking's 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 |
| GRG Banking vs. Zhejiang Yongjin Metal | GRG Banking vs. Shandong Hongchuang Aluminum | GRG Banking vs. Eyebright Medical Technology | GRG Banking 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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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