Correlation Between DRLimited and China Citic
Specify exactly 2 symbols:
By analyzing existing cross correlation between DR Limited and China Citic Bank, you can compare the effects of market volatilities on DRLimited 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 DRLimited with a short position of China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of DRLimited and China Citic.
Diversification Opportunities for DRLimited and China Citic
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between DRLimited and China is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding DR Limited 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 DRLimited 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 DR Limited 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 DRLimited i.e., DRLimited and China Citic go up and down completely randomly.
Pair Corralation between DRLimited and China Citic
Assuming the 90 days trading horizon DR Limited is expected to generate 2.02 times more return on investment than China Citic. However, DRLimited is 2.02 times more volatile than China Citic Bank. It trades about 0.03 of its potential returns per unit of risk. China Citic Bank is currently generating about -0.02 per unit of risk. If you would invest 2,489 in DR Limited on December 3, 2024 and sell it today you would earn a total of 81.00 from holding DR Limited or generate 3.25% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Against |
Strength | Insignificant |
Accuracy | 98.31% |
Values | Daily Returns |
DR Limited vs. China Citic Bank
Performance |
Timeline |
DR Limited |
China Citic Bank |
DRLimited and China Citic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with DRLimited and China Citic
The main advantage of trading using opposite DRLimited and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if DRLimited 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.DRLimited vs. Guolin Environmental Tech | DRLimited vs. Sinosteel Engineering and | DRLimited vs. Tongxing Environmental Protection | DRLimited vs. Nexchip Semiconductor Corp |
China Citic vs. Nexchip Semiconductor Corp | China Citic vs. Semiconductor Manufacturing Intl | China Citic vs. StarPower Semiconductor | China Citic vs. Xiamen Insight Investment |
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.
Other Complementary Tools
Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |