Correlation Between Metallurgical and CITIC Metal
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By analyzing existing cross correlation between Metallurgical of and CITIC Metal Co, you can compare the effects of market volatilities on Metallurgical 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 Metallurgical with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Metallurgical and CITIC Metal.
Diversification Opportunities for Metallurgical and CITIC Metal
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Metallurgical and CITIC is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding Metallurgical of and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Metallurgical 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 Metallurgical of 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 Metallurgical i.e., Metallurgical and CITIC Metal go up and down completely randomly.
Pair Corralation between Metallurgical and CITIC Metal
Assuming the 90 days trading horizon Metallurgical of is expected to generate 1.02 times more return on investment than CITIC Metal. However, Metallurgical is 1.02 times more volatile than CITIC Metal Co. It trades about 0.04 of its potential returns per unit of risk. CITIC Metal Co is currently generating about -0.16 per unit of risk. If you would invest 331.00 in Metallurgical of on September 24, 2024 and sell it today you would earn a total of 3.00 from holding Metallurgical of or generate 0.91% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 95.45% |
Values | Daily Returns |
Metallurgical of vs. CITIC Metal Co
Performance |
Timeline |
Metallurgical |
CITIC Metal |
Metallurgical and CITIC Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Metallurgical and CITIC Metal
The main advantage of trading using opposite Metallurgical and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Metallurgical 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.Metallurgical vs. HeBei Jinniu Chemical | Metallurgical vs. Ningxia Younglight Chemicals | Metallurgical vs. Xinhua Winshare Publishing | Metallurgical vs. Maoming Petro Chemical Shihua |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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