Correlation Between China Citic and Sobute New
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By analyzing existing cross correlation between China Citic Bank and Sobute New Materials, you can compare the effects of market volatilities on China Citic and Sobute New 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 China Citic with a short position of Sobute New. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and Sobute New.
Diversification Opportunities for China Citic and Sobute New
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Sobute is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and Sobute New Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sobute New Materials and China Citic 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 China Citic Bank are associated (or correlated) with Sobute New. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sobute New Materials has no effect on the direction of China Citic i.e., China Citic and Sobute New go up and down completely randomly.
Pair Corralation between China Citic and Sobute New
Assuming the 90 days trading horizon China Citic Bank is expected to generate 0.86 times more return on investment than Sobute New. However, China Citic Bank is 1.16 times less risky than Sobute New. It trades about 0.16 of its potential returns per unit of risk. Sobute New Materials is currently generating about 0.08 per unit of risk. If you would invest 660.00 in China Citic Bank on September 14, 2024 and sell it today you would earn a total of 33.00 from holding China Citic Bank or generate 5.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. Sobute New Materials
Performance |
| Timeline |
| China Citic Bank |
| Sobute New Materials |
China Citic and Sobute New Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and Sobute New
The main advantage of trading using opposite China Citic and Sobute New positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, Sobute New 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 Sobute New will offset losses from the drop in Sobute New's long position.| China Citic vs. Guangdong Qunxing Toys | China Citic vs. Haima Automobile Group | China Citic vs. Shandong Iron and | China Citic vs. Anhui Jianghuai Automobile |
| Sobute New vs. Guocheng Mining Co | Sobute New vs. Ningbo Thermal Power | Sobute New vs. Zhejiang Qianjiang Motorcycle | Sobute New vs. Minmetals Capital Co |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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