Correlation Between CITIC Metal and Shenzhen Bioeasy
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By analyzing existing cross correlation between CITIC Metal Co and Shenzhen Bioeasy Biotechnology, you can compare the effects of market volatilities on CITIC Metal and Shenzhen Bioeasy 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 Shenzhen Bioeasy. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Shenzhen Bioeasy.
Diversification Opportunities for CITIC Metal and Shenzhen Bioeasy
0.54 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CITIC and Shenzhen is 0.54. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Shenzhen Bioeasy Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Bioeasy Bio 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 Shenzhen Bioeasy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Bioeasy Bio has no effect on the direction of CITIC Metal i.e., CITIC Metal and Shenzhen Bioeasy go up and down completely randomly.
Pair Corralation between CITIC Metal and Shenzhen Bioeasy
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.66 times more return on investment than Shenzhen Bioeasy. However, CITIC Metal Co is 1.52 times less risky than Shenzhen Bioeasy. It trades about -0.02 of its potential returns per unit of risk. Shenzhen Bioeasy Biotechnology is currently generating about -0.02 per unit of risk. If you would invest 1,082 in CITIC Metal Co on November 19, 2024 and sell it today you would lose (346.00) from holding CITIC Metal Co or give up 31.98% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
CITIC Metal Co vs. Shenzhen Bioeasy Biotechnology
Performance |
| Timeline |
| CITIC Metal |
| Shenzhen Bioeasy Bio |
CITIC Metal and Shenzhen Bioeasy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Shenzhen Bioeasy
The main advantage of trading using opposite CITIC Metal and Shenzhen Bioeasy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Shenzhen Bioeasy 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 Shenzhen Bioeasy will offset losses from the drop in Shenzhen Bioeasy's long position.| CITIC Metal vs. Allgens Medical Technology | CITIC Metal vs. Guangdong Liantai Environmental | CITIC Metal vs. Guolin Environmental Tech | CITIC Metal vs. Qiaoyin Environmental Tech |
| Shenzhen Bioeasy vs. Fujian Nanwang Environment | Shenzhen Bioeasy vs. Qingdao Choho Industrial | Shenzhen Bioeasy vs. Guangdong Liantai Environmental | Shenzhen Bioeasy vs. Fangda Special Steel |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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