Correlation Between CITIC Securities and Tianjin Pengling
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By analyzing existing cross correlation between CITIC Securities Co and Tianjin Pengling Rubber, you can compare the effects of market volatilities on CITIC Securities and Tianjin Pengling 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 Securities with a short position of Tianjin Pengling. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Securities and Tianjin Pengling.
Diversification Opportunities for CITIC Securities and Tianjin Pengling
0.95 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between CITIC and Tianjin is 0.95. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Securities Co and Tianjin Pengling Rubber in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tianjin Pengling Rubber and CITIC Securities 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 Securities Co are associated (or correlated) with Tianjin Pengling. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tianjin Pengling Rubber has no effect on the direction of CITIC Securities i.e., CITIC Securities and Tianjin Pengling go up and down completely randomly.
Pair Corralation between CITIC Securities and Tianjin Pengling
Assuming the 90 days trading horizon CITIC Securities Co is expected to generate 0.96 times more return on investment than Tianjin Pengling. However, CITIC Securities Co is 1.04 times less risky than Tianjin Pengling. It trades about 0.25 of its potential returns per unit of risk. Tianjin Pengling Rubber is currently generating about 0.14 per unit of risk. If you would invest 1,911 in CITIC Securities Co on September 5, 2024 and sell it today you would earn a total of 1,197 from holding CITIC Securities Co or generate 62.64% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
CITIC Securities Co vs. Tianjin Pengling Rubber
Performance |
Timeline |
CITIC Securities |
Tianjin Pengling Rubber |
CITIC Securities and Tianjin Pengling Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with CITIC Securities and Tianjin Pengling
The main advantage of trading using opposite CITIC Securities and Tianjin Pengling positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Securities position performs unexpectedly, Tianjin Pengling 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 Tianjin Pengling will offset losses from the drop in Tianjin Pengling's long position.CITIC Securities vs. Tianjin Silvery Dragon | CITIC Securities vs. Changjiang Jinggong Steel | CITIC Securities vs. Shandong Mining Machinery | CITIC Securities vs. Hang Xiao Steel |
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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 Sign In To Macroaxis module to sign in to explore Macroaxis' wealth optimization platform and fintech modules.
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