Correlation Between CITIC Metal and Yunnan Jianzhijia
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By analyzing existing cross correlation between CITIC Metal Co and Yunnan Jianzhijia Health Chain, you can compare the effects of market volatilities on CITIC Metal and Yunnan Jianzhijia 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 Yunnan Jianzhijia. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Yunnan Jianzhijia.
Diversification Opportunities for CITIC Metal and Yunnan Jianzhijia
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Yunnan is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Yunnan Jianzhijia Health Chain in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Yunnan Jianzhijia 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 Yunnan Jianzhijia. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Yunnan Jianzhijia has no effect on the direction of CITIC Metal i.e., CITIC Metal and Yunnan Jianzhijia go up and down completely randomly.
Pair Corralation between CITIC Metal and Yunnan Jianzhijia
Assuming the 90 days trading horizon CITIC Metal Co is expected to generate 0.39 times more return on investment than Yunnan Jianzhijia. However, CITIC Metal Co is 2.55 times less risky than Yunnan Jianzhijia. It trades about -0.19 of its potential returns per unit of risk. Yunnan Jianzhijia Health Chain is currently generating about -0.14 per unit of risk. If you would invest 788.00 in CITIC Metal Co on October 30, 2024 and sell it today you would lose (63.00) from holding CITIC Metal Co or give up 7.99% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Metal Co vs. Yunnan Jianzhijia Health Chain
Performance |
| Timeline |
| CITIC Metal |
| Yunnan Jianzhijia |
CITIC Metal and Yunnan Jianzhijia Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Yunnan Jianzhijia
The main advantage of trading using opposite CITIC Metal and Yunnan Jianzhijia positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Yunnan Jianzhijia 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 Yunnan Jianzhijia will offset losses from the drop in Yunnan Jianzhijia'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 |
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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.
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