Correlation Between Zhongtong Guomai and CITIC Metal
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By analyzing existing cross correlation between Zhongtong Guomai Communication and CITIC Metal Co, you can compare the effects of market volatilities on Zhongtong Guomai and CITIC Metal 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 Zhongtong Guomai with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhongtong Guomai and CITIC Metal.
Diversification Opportunities for Zhongtong Guomai and CITIC Metal
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Zhongtong and CITIC is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding Zhongtong Guomai Communication and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Zhongtong Guomai 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 Zhongtong Guomai Communication are associated (or correlated) with CITIC Metal. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Metal has no effect on the direction of Zhongtong Guomai i.e., Zhongtong Guomai and CITIC Metal go up and down completely randomly.
Pair Corralation between Zhongtong Guomai and CITIC Metal
Assuming the 90 days trading horizon Zhongtong Guomai Communication is expected to under-perform the CITIC Metal. In addition to that, Zhongtong Guomai is 3.05 times more volatile than CITIC Metal Co. It trades about -0.24 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.21 per unit of volatility. If you would invest 842.00 in CITIC Metal Co on September 12, 2024 and sell it today you would lose (50.00) from holding CITIC Metal Co or give up 5.94% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Zhongtong Guomai Communication vs. CITIC Metal Co
Performance |
| Timeline |
| Zhongtong Guomai Com |
| CITIC Metal |
Zhongtong Guomai and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhongtong Guomai and CITIC Metal
The main advantage of trading using opposite Zhongtong Guomai and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhongtong Guomai position performs unexpectedly, CITIC Metal 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 CITIC Metal will offset losses from the drop in CITIC Metal's long position.| Zhongtong Guomai vs. Gansu Jiu Steel | Zhongtong Guomai vs. Shandong Mining Machinery | Zhongtong Guomai vs. Aba Chemicals Corp | Zhongtong Guomai vs. BlueFocus Communication Group |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Rongsheng Petrochemical 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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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