Correlation Between CITIC Metal and Minami Acoustics
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By analyzing existing cross correlation between CITIC Metal Co and Minami Acoustics Ltd, you can compare the effects of market volatilities on CITIC Metal and Minami Acoustics 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 Minami Acoustics. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Minami Acoustics.
Diversification Opportunities for CITIC Metal and Minami Acoustics
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Minami is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Minami Acoustics Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Minami Acoustics 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 Minami Acoustics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Minami Acoustics has no effect on the direction of CITIC Metal i.e., CITIC Metal and Minami Acoustics go up and down completely randomly.
Pair Corralation between CITIC Metal and Minami Acoustics
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the Minami Acoustics. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Metal Co is 1.8 times less risky than Minami Acoustics. The stock trades about -0.02 of its potential returns per unit of risk. The Minami Acoustics Ltd is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 4,616 in Minami Acoustics Ltd on September 4, 2024 and sell it today you would lose (894.00) from holding Minami Acoustics Ltd or give up 19.37% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 90.02% |
| Values | Daily Returns |
CITIC Metal Co vs. Minami Acoustics Ltd
Performance |
| Timeline |
| CITIC Metal |
| Minami Acoustics |
CITIC Metal and Minami Acoustics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Minami Acoustics
The main advantage of trading using opposite CITIC Metal and Minami Acoustics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Minami Acoustics 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 Minami Acoustics will offset losses from the drop in Minami Acoustics' long position.| CITIC Metal vs. Zhongtong Guomai Communication | CITIC Metal vs. Yindu Kitchen Equipment | CITIC Metal vs. Zhejiang JIULI Hi tech | CITIC Metal vs. Marssenger Kitchenware Co |
| Minami Acoustics vs. CITIC Metal Co | Minami Acoustics vs. Rising Nonferrous Metals | Minami Acoustics vs. Sino Platinum Metals Co | Minami Acoustics vs. CITIC Guoan Information |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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