Correlation Between CITIC Resources and OM Holdings
Can any of the company-specific risk be diversified away by investing in both CITIC Resources and OM Holdings 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 CITIC Resources and OM Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Resources Holdings and OM Holdings Limited, you can compare the effects of market volatilities on CITIC Resources and OM Holdings 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 Resources with a short position of OM Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Resources and OM Holdings.
Diversification Opportunities for CITIC Resources and OM Holdings
-0.9 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIC and OMHLF is -0.9. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Resources Holdings and OM Holdings Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on OM Holdings Limited and CITIC Resources 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 Resources Holdings are associated (or correlated) with OM Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of OM Holdings Limited has no effect on the direction of CITIC Resources i.e., CITIC Resources and OM Holdings go up and down completely randomly.
Pair Corralation between CITIC Resources and OM Holdings
If you would invest 8.00 in CITIC Resources Holdings on August 31, 2024 and sell it today you would earn a total of 0.00 from holding CITIC Resources Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 1.59% |
| Values | Daily Returns |
CITIC Resources Holdings vs. OM Holdings Limited
Performance |
| Timeline |
| CITIC Resources Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| OM Holdings Limited |
CITIC Resources and OM Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Resources and OM Holdings
The main advantage of trading using opposite CITIC Resources and OM Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Resources position performs unexpectedly, OM Holdings 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 OM Holdings will offset losses from the drop in OM Holdings' long position.| CITIC Resources vs. Sherritt International | CITIC Resources vs. Metals X Limited | CITIC Resources vs. Interra Copper Corp | CITIC Resources vs. Anglo American PLC |
| OM Holdings vs. Sherritt International | OM Holdings vs. AMG Advanced Metallurgical | OM Holdings vs. Metals X Limited | OM Holdings vs. Interra Copper Corp |
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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
Other Complementary Tools
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Equity Search Search for actively traded equities including funds and ETFs from over 30 global markets |