Correlation Between CITIC Metal and Gifore Agricultural
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By analyzing existing cross correlation between CITIC Metal Co and Gifore Agricultural Machinery, you can compare the effects of market volatilities on CITIC Metal and Gifore Agricultural 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 Gifore Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Gifore Agricultural.
Diversification Opportunities for CITIC Metal and Gifore Agricultural
-0.17 | Correlation Coefficient |
Good diversification
The 3 months correlation between CITIC and Gifore is -0.17. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Gifore Agricultural Machinery in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gifore Agricultural 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 Gifore Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gifore Agricultural has no effect on the direction of CITIC Metal i.e., CITIC Metal and Gifore Agricultural go up and down completely randomly.
Pair Corralation between CITIC Metal and Gifore Agricultural
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.29 times more return on investment than Gifore Agricultural. However, CITIC Metal Co is 3.45 times less risky than Gifore Agricultural. It trades about -0.16 of its potential returns per unit of risk. Gifore Agricultural Machinery is currently generating about -0.16 per unit of risk. If you would invest 753.00 in CITIC Metal Co on October 28, 2024 and sell it today you would lose (27.00) from holding CITIC Metal Co or give up 3.59% 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. Gifore Agricultural Machinery
Performance |
| Timeline |
| CITIC Metal |
| Gifore Agricultural |
CITIC Metal and Gifore Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Gifore Agricultural
The main advantage of trading using opposite CITIC Metal and Gifore Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Gifore Agricultural 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 Gifore Agricultural will offset losses from the drop in Gifore Agricultural's long position.| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
| Gifore Agricultural vs. Agricultural Bank of | Gifore Agricultural vs. Industrial and Commercial | Gifore Agricultural vs. Bank of China | Gifore Agricultural vs. China Construction Bank |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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