Correlation Between CITIC Metal and Zhuhai Comleader
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By analyzing existing cross correlation between CITIC Metal Co and Zhuhai Comleader Information, you can compare the effects of market volatilities on CITIC Metal and Zhuhai Comleader 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 Zhuhai Comleader. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Metal and Zhuhai Comleader.
Diversification Opportunities for CITIC Metal and Zhuhai Comleader
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between CITIC and Zhuhai is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Metal Co and Zhuhai Comleader Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhuhai Comleader Inf 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 Zhuhai Comleader. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhuhai Comleader Inf has no effect on the direction of CITIC Metal i.e., CITIC Metal and Zhuhai Comleader go up and down completely randomly.
Pair Corralation between CITIC Metal and Zhuhai Comleader
Assuming the 90 days trading horizon CITIC Metal Co is expected to under-perform the Zhuhai Comleader. But the stock apears to be less risky and, when comparing its historical volatility, CITIC Metal Co is 2.69 times less risky than Zhuhai Comleader. The stock trades about -0.25 of its potential returns per unit of risk. The Zhuhai Comleader Information is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 2,017 in Zhuhai Comleader Information on September 12, 2024 and sell it today you would earn a total of 94.00 from holding Zhuhai Comleader Information or generate 4.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 95.45% |
| Values | Daily Returns |
CITIC Metal Co vs. Zhuhai Comleader Information
Performance |
| Timeline |
| CITIC Metal |
| Zhuhai Comleader Inf |
CITIC Metal and Zhuhai Comleader Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Metal and Zhuhai Comleader
The main advantage of trading using opposite CITIC Metal and Zhuhai Comleader positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Metal position performs unexpectedly, Zhuhai Comleader 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 Zhuhai Comleader will offset losses from the drop in Zhuhai Comleader'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 |
| Zhuhai Comleader vs. Gansu Jiu Steel | Zhuhai Comleader vs. Shandong Mining Machinery | Zhuhai Comleader vs. Aba Chemicals Corp | Zhuhai Comleader 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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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