Correlation Between CITIC Metal and Zhongtong Guomai
Specify exactly 2 symbols:
By analyzing existing cross correlation between CITIC Metal Co and Zhongtong Guomai Communication, you can compare the effects of market volatilities on CITIC Metal and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Zhongtong Guomai.
Diversification Opportunities for CITIC Metal and Zhongtong Guomai
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Zhongtong is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of CITIC Metal i.e., CITIC Metal and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between CITIC Metal and Zhongtong Guomai
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the Zhongtong Guomai. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Metal Co is 1.24 times less risky than Zhongtong Guomai. The stock trades about -0.02 of its potential returns per unit of risk. The Zhongtong Guomai Communication is currently generating about 0.02 of returns per unit of risk over similar time horizon. If you would invest 1,108 in Zhongtong Guomai Communication on September 12, 2024 and sell it today you would earn a total of 23.00 from holding Zhongtong Guomai Communication or generate 2.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 85.29% |
| Values | Daily Returns |
CITIC Metal Co vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| CITIC Metal |
| Zhongtong Guomai Com |
CITIC Metal and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Zhongtong Guomai
The main advantage of trading using opposite CITIC Metal and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Rongsheng Petrochemical Co |
| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format |