Correlation Between CITIC Metal and Nantong Haixing
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By analyzing existing cross correlation between CITIC Metal Co and Nantong Haixing Electronics, you can compare the effects of market volatilities on CITIC Metal and Nantong Haixing 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 Nantong Haixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Nantong Haixing.
Diversification Opportunities for CITIC Metal and Nantong Haixing
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Nantong is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Nantong Haixing Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nantong Haixing Elec 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 Nantong Haixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nantong Haixing Elec has no effect on the direction of CITIC Metal i.e., CITIC Metal and Nantong Haixing go up and down completely randomly.
Pair Corralation between CITIC Metal and Nantong Haixing
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.81 times more return on investment than Nantong Haixing. However, CITIC Metal Co is 1.23 times less risky than Nantong Haixing. It trades about -0.08 of its potential returns per unit of risk. Nantong Haixing Electronics is currently generating about -0.08 per unit of risk. If you would invest 804.00 in CITIC Metal Co on August 29, 2024 and sell it today you would lose (22.00) from holding CITIC Metal Co or give up 2.74% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Nantong Haixing Electronics
Performance |
| Timeline |
| CITIC Metal |
| Nantong Haixing Elec |
CITIC Metal and Nantong Haixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Nantong Haixing
The main advantage of trading using opposite CITIC Metal and Nantong Haixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Nantong Haixing 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 Nantong Haixing will offset losses from the drop in Nantong Haixing's long position.| CITIC Metal vs. Shandong Gold Mining | CITIC Metal vs. Rongsheng Petrochemical Co | CITIC Metal vs. Inner Mongolia BaoTou | CITIC Metal vs. Jiangxi Ganfeng Lithium |
| Nantong Haixing vs. PetroChina Co Ltd | Nantong Haixing vs. China State Construction | Nantong Haixing vs. China Mobile Limited | Nantong Haixing vs. Industrial and Commercial |
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 CEOs Directory module to screen CEOs from public companies around the world.
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