Correlation Between CITIC Metal and Guangdong Marubi
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By analyzing existing cross correlation between CITIC Metal Co and Guangdong Marubi Biotechnology, you can compare the effects of market volatilities on CITIC Metal and Guangdong Marubi 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 Guangdong Marubi. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Guangdong Marubi.
Diversification Opportunities for CITIC Metal and Guangdong Marubi
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Guangdong is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Guangdong Marubi Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Marubi Bio 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 Guangdong Marubi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Marubi Bio has no effect on the direction of CITIC Metal i.e., CITIC Metal and Guangdong Marubi go up and down completely randomly.
Pair Corralation between CITIC Metal and Guangdong Marubi
Assuming the 90 days trading horizon CITIC Metal is expected to generate 2.16 times less return on investment than Guangdong Marubi. But when comparing it to its historical volatility, CITIC Metal Co is 1.11 times less risky than Guangdong Marubi. It trades about 0.01 of its potential returns per unit of risk. Guangdong Marubi Biotechnology is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 2,484 in Guangdong Marubi Biotechnology on August 25, 2024 and sell it today you would earn a total of 284.00 from holding Guangdong Marubi Biotechnology or generate 11.43% 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. Guangdong Marubi Biotechnology
Performance |
| Timeline |
| CITIC Metal |
| Guangdong Marubi Bio |
CITIC Metal and Guangdong Marubi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Guangdong Marubi
The main advantage of trading using opposite CITIC Metal and Guangdong Marubi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Guangdong Marubi 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 Guangdong Marubi will offset losses from the drop in Guangdong Marubi's long position.| CITIC Metal vs. Hainan Haiqi Transportation | CITIC Metal vs. Sichuan Fulin Transportation | CITIC Metal vs. Liaoning Dingjide Petrochemical | CITIC Metal vs. Hubeiyichang Transportation Group |
| Guangdong Marubi vs. Winner Medical Co | Guangdong Marubi vs. Jinhe Biotechnology Co | Guangdong Marubi vs. Shenzhen Bioeasy Biotechnology | Guangdong Marubi vs. CareRay Digital Medical |
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 Price Ceiling Movement module to calculate and plot Price Ceiling Movement for different equity instruments.
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