Correlation Between CITIC Metal and Ye Chiu
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By analyzing existing cross correlation between CITIC Metal Co and Ye Chiu Metal, you can compare the effects of market volatilities on CITIC Metal and Ye Chiu 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 Ye Chiu. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Ye Chiu.
Diversification Opportunities for CITIC Metal and Ye Chiu
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and 601388 is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Ye Chiu Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ye Chiu Metal 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 Ye Chiu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ye Chiu Metal has no effect on the direction of CITIC Metal i.e., CITIC Metal and Ye Chiu go up and down completely randomly.
Pair Corralation between CITIC Metal and Ye Chiu
Assuming the 90 days trading horizon CITIC Metal is expected to generate 2.39 times less return on investment than Ye Chiu. But when comparing it to its historical volatility, CITIC Metal Co is 1.34 times less risky than Ye Chiu. It trades about 0.02 of its potential returns per unit of risk. Ye Chiu Metal is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 245.00 in Ye Chiu Metal on September 1, 2024 and sell it today you would earn a total of 20.00 from holding Ye Chiu Metal or generate 8.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Ye Chiu Metal
Performance |
| Timeline |
| CITIC Metal |
| Ye Chiu Metal |
CITIC Metal and Ye Chiu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Ye Chiu
The main advantage of trading using opposite CITIC Metal and Ye Chiu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Ye Chiu 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 Ye Chiu will offset losses from the drop in Ye Chiu'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 |
| Ye Chiu vs. Zijin Mining Group | Ye Chiu vs. Wanhua Chemical Group | Ye Chiu vs. Baoshan Iron Steel | Ye Chiu vs. Shandong Gold Mining |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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