Correlation Between CITIC Metal and Tianshui Huatian
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By analyzing existing cross correlation between CITIC Metal Co and Tianshui Huatian Technology, you can compare the effects of market volatilities on CITIC Metal and Tianshui Huatian 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 Tianshui Huatian. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Tianshui Huatian.
Diversification Opportunities for CITIC Metal and Tianshui Huatian
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Tianshui is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Tianshui Huatian Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianshui Huatian Tec 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 Tianshui Huatian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianshui Huatian Tec has no effect on the direction of CITIC Metal i.e., CITIC Metal and Tianshui Huatian go up and down completely randomly.
Pair Corralation between CITIC Metal and Tianshui Huatian
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the Tianshui Huatian. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Metal Co is 1.8 times less risky than Tianshui Huatian. The stock trades about -0.18 of its potential returns per unit of risk. The Tianshui Huatian Technology is currently generating about -0.06 of returns per unit of risk over similar time horizon. If you would invest 1,192 in Tianshui Huatian Technology on October 18, 2024 and sell it today you would lose (75.00) from holding Tianshui Huatian Technology or give up 6.29% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
CITIC Metal Co vs. Tianshui Huatian Technology
Performance |
Timeline |
CITIC Metal |
Tianshui Huatian Tec |
CITIC Metal and Tianshui Huatian Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CITIC Metal and Tianshui Huatian
The main advantage of trading using opposite CITIC Metal and Tianshui Huatian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Tianshui Huatian 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 Tianshui Huatian will offset losses from the drop in Tianshui Huatian's long position.CITIC Metal vs. Wuxi Dk Electronic | CITIC Metal vs. Jiangyin Jianghua Microelectronics | CITIC Metal vs. Beijing YanDong MicroElectronic | CITIC Metal vs. YiDong Electronics Technology |
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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 Managers module to screen money managers from public funds and ETFs managed around the world.
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