Correlation Between CITIC Metal and 360 Security
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By analyzing existing cross correlation between CITIC Metal Co and 360 Security Technology, you can compare the effects of market volatilities on CITIC Metal and 360 Security 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 360 Security. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and 360 Security.
Diversification Opportunities for CITIC Metal and 360 Security
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and 360 is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and 360 Security Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on 360 Security Technology 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 360 Security. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of 360 Security Technology has no effect on the direction of CITIC Metal i.e., CITIC Metal and 360 Security go up and down completely randomly.
Pair Corralation between CITIC Metal and 360 Security
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the 360 Security. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Metal Co is 4.48 times less risky than 360 Security. The stock trades about -0.13 of its potential returns per unit of risk. The 360 Security Technology is currently generating about 0.36 of returns per unit of risk over similar time horizon. If you would invest 877.00 in 360 Security Technology on August 29, 2024 and sell it today you would earn a total of 495.00 from holding 360 Security Technology or generate 56.44% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. 360 Security Technology
Performance |
| Timeline |
| CITIC Metal |
| 360 Security Technology |
CITIC Metal and 360 Security Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and 360 Security
The main advantage of trading using opposite CITIC Metal and 360 Security positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, 360 Security 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 360 Security will offset losses from the drop in 360 Security'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 |
| 360 Security vs. Kweichow Moutai Co | 360 Security vs. Beijing Roborock Technology | 360 Security vs. G bits Network Technology | 360 Security vs. China Mobile Limited |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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