Correlation Between Guangdong Marubi and CITIC Metal
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By analyzing existing cross correlation between Guangdong Marubi Biotechnology and CITIC Metal Co, you can compare the effects of market volatilities on Guangdong Marubi 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 Guangdong Marubi with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangdong Marubi and CITIC Metal.
Diversification Opportunities for Guangdong Marubi and CITIC Metal
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Guangdong and CITIC is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding Guangdong Marubi Biotechnology and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Guangdong Marubi 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 Guangdong Marubi Biotechnology 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 Guangdong Marubi i.e., Guangdong Marubi and CITIC Metal go up and down completely randomly.
Pair Corralation between Guangdong Marubi and CITIC Metal
Assuming the 90 days trading horizon Guangdong Marubi Biotechnology is expected to under-perform the CITIC Metal. In addition to that, Guangdong Marubi is 1.51 times more volatile than CITIC Metal Co. It trades about -0.19 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.13 per unit of volatility. If you would invest 804.00 in CITIC Metal Co on August 28, 2024 and sell it today you would lose (33.00) from holding CITIC Metal Co or give up 4.1% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangdong Marubi Biotechnology vs. CITIC Metal Co
Performance |
| Timeline |
| Guangdong Marubi Bio |
| CITIC Metal |
Guangdong Marubi and CITIC Metal Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangdong Marubi and CITIC Metal
The main advantage of trading using opposite Guangdong Marubi and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangdong Marubi 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.| Guangdong Marubi vs. Longjian Road Bridge | Guangdong Marubi vs. Dazhong Transportation Group | Guangdong Marubi vs. Heilongjiang Publishing Media | Guangdong Marubi vs. Guizhou BroadcastingTV Info |
| CITIC Metal vs. Zijin Mining Group | CITIC Metal vs. Wanhua Chemical Group | CITIC Metal vs. Baoshan Iron Steel | CITIC Metal vs. Shandong Gold Mining |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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