Correlation Between CITIC Metal and Centre Testing
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By analyzing existing cross correlation between CITIC Metal Co and Centre Testing Intl, you can compare the effects of market volatilities on CITIC Metal and Centre Testing 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 Centre Testing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Centre Testing.
Diversification Opportunities for CITIC Metal and Centre Testing
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Centre is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Centre Testing Intl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Centre Testing Intl 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 Centre Testing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Centre Testing Intl has no effect on the direction of CITIC Metal i.e., CITIC Metal and Centre Testing go up and down completely randomly.
Pair Corralation between CITIC Metal and Centre Testing
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 1.04 times more return on investment than Centre Testing. However, CITIC Metal is 1.04 times more volatile than Centre Testing Intl. It trades about -0.02 of its potential returns per unit of risk. Centre Testing Intl is currently generating about -0.03 per unit of risk. If you would invest 1,082 in CITIC Metal Co on September 12, 2024 and sell it today you would lose (296.00) from holding CITIC Metal Co or give up 27.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 85.29% |
| Values | Daily Returns |
CITIC Metal Co vs. Centre Testing Intl
Performance |
| Timeline |
| CITIC Metal |
| Centre Testing Intl |
CITIC Metal and Centre Testing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Centre Testing
The main advantage of trading using opposite CITIC Metal and Centre Testing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Centre Testing 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 Centre Testing will offset losses from the drop in Centre Testing's long position.| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Rongsheng Petrochemical Co |
| Centre Testing vs. Easyhome New Retail | Centre Testing vs. Tongling Nonferrous Metals | Centre Testing vs. CITIC Metal Co | Centre Testing vs. Shanghai Shuixing Home |
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 Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.
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