Correlation Between China CITIC and China Citic
Can any of the company-specific risk be diversified away by investing in both China CITIC and China Citic at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China CITIC and China Citic into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China CITIC Bank and China Citic Bank, you can compare the effects of market volatilities on China CITIC and China Citic 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 China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China CITIC and China Citic.
Diversification Opportunities for China CITIC and China Citic
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and China is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding China CITIC Bank and China Citic Bank in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Citic Bank 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 China Citic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Citic Bank has no effect on the direction of China CITIC i.e., China CITIC and China Citic go up and down completely randomly.
Pair Corralation between China CITIC and China Citic
If you would invest 59.00 in China CITIC Bank on August 27, 2024 and sell it today you would earn a total of 0.00 from holding China CITIC Bank or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 4.76% |
| Values | Daily Returns |
China CITIC Bank vs. China Citic Bank
Performance |
| Timeline |
| China CITIC Bank |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Citic Bank |
China CITIC and China Citic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China CITIC and China Citic
The main advantage of trading using opposite China CITIC and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China CITIC position performs unexpectedly, China Citic 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 China Citic will offset losses from the drop in China Citic's long position.| China CITIC vs. Postal Savings Bank | China CITIC vs. China Merchants Bank | China CITIC vs. China Merchants Bank | China CITIC vs. Community West Bancshares |
| China Citic vs. China Everbright Bank | China Citic vs. China Merchants Bank | China Citic vs. Postal Savings Bank | China Citic vs. China Merchants Bank |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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