Correlation Between CITIC Metal and China Petroleum
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By analyzing existing cross correlation between CITIC Metal Co and China Petroleum Chemical, you can compare the effects of market volatilities on CITIC Metal and China Petroleum 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 China Petroleum. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and China Petroleum.
Diversification Opportunities for CITIC Metal and China Petroleum
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CITIC and China is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and China Petroleum Chemical in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Petroleum Chemical 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 China Petroleum. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Petroleum Chemical has no effect on the direction of CITIC Metal i.e., CITIC Metal and China Petroleum go up and down completely randomly.
Pair Corralation between CITIC Metal and China Petroleum
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 1.46 times more return on investment than China Petroleum. However, CITIC Metal is 1.46 times more volatile than China Petroleum Chemical. It trades about 0.04 of its potential returns per unit of risk. China Petroleum Chemical is currently generating about -0.13 per unit of risk. If you would invest 772.00 in CITIC Metal Co on August 25, 2024 and sell it today you would earn a total of 8.00 from holding CITIC Metal Co or generate 1.04% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. China Petroleum Chemical
Performance |
| Timeline |
| CITIC Metal |
| China Petroleum Chemical |
CITIC Metal and China Petroleum Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and China Petroleum
The main advantage of trading using opposite CITIC Metal and China Petroleum positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, China Petroleum 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 China Petroleum will offset losses from the drop in China Petroleum'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 |
| China Petroleum vs. Nantong Haixing Electronics | China Petroleum vs. CITIC Metal Co | China Petroleum vs. Guangzhou Dongfang Hotel | China Petroleum vs. Unigroup Guoxin Microelectronics |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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