Correlation Between CITIC Metal and Anhui Transport
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By analyzing existing cross correlation between CITIC Metal Co and Anhui Transport Consulting, you can compare the effects of market volatilities on CITIC Metal and Anhui Transport 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 Anhui Transport. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Anhui Transport.
Diversification Opportunities for CITIC Metal and Anhui Transport
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Anhui is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Anhui Transport Consulting in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Anhui Transport Cons 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 Anhui Transport. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Anhui Transport Cons has no effect on the direction of CITIC Metal i.e., CITIC Metal and Anhui Transport go up and down completely randomly.
Pair Corralation between CITIC Metal and Anhui Transport
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.77 times more return on investment than Anhui Transport. However, CITIC Metal Co is 1.29 times less risky than Anhui Transport. It trades about 0.02 of its potential returns per unit of risk. Anhui Transport Consulting is currently generating about 0.01 per unit of risk. If you would invest 767.00 in CITIC Metal Co on September 1, 2024 and sell it today you would earn a total of 21.00 from holding CITIC Metal Co or generate 2.74% 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. Anhui Transport Consulting
Performance |
| Timeline |
| CITIC Metal |
| Anhui Transport Cons |
CITIC Metal and Anhui Transport Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Anhui Transport
The main advantage of trading using opposite CITIC Metal and Anhui Transport positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Anhui Transport 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 Anhui Transport will offset losses from the drop in Anhui Transport'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 |
| Anhui Transport vs. Biwin Storage Technology | Anhui Transport vs. PetroChina Co Ltd | Anhui Transport vs. Industrial and Commercial | Anhui Transport vs. China Construction Bank |
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 Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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