Correlation Between Anhui Transport and CITIC Metal
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By analyzing existing cross correlation between Anhui Transport Consulting and CITIC Metal Co, you can compare the effects of market volatilities on Anhui Transport 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 Anhui Transport with a short position of CITIC Metal. Check out your portfolio center. Please also check ongoing floating volatility patterns of Anhui Transport and CITIC Metal.
Diversification Opportunities for Anhui Transport and CITIC Metal
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Anhui and CITIC is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Anhui Transport Consulting and CITIC Metal Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Metal and Anhui Transport 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 Anhui Transport Consulting 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 Anhui Transport i.e., Anhui Transport and CITIC Metal go up and down completely randomly.
Pair Corralation between Anhui Transport and CITIC Metal
Assuming the 90 days trading horizon Anhui Transport Consulting is expected to under-perform the CITIC Metal. In addition to that, Anhui Transport is 1.68 times more volatile than CITIC Metal Co. It trades about -0.14 of its total potential returns per unit of risk. CITIC Metal Co is currently generating about -0.16 per unit of volatility. If you would invest 778.00 in CITIC Metal Co on September 24, 2024 and sell it today you would lose (31.00) from holding CITIC Metal Co or give up 3.98% of portfolio value over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Anhui Transport Consulting vs. CITIC Metal Co
Performance |
Timeline |
Anhui Transport Cons |
CITIC Metal |
Anhui Transport and CITIC Metal Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Anhui Transport and CITIC Metal
The main advantage of trading using opposite Anhui Transport and CITIC Metal positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Anhui Transport 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.Anhui Transport vs. Ming Yang Smart | Anhui Transport vs. 159681 | Anhui Transport vs. 159005 | Anhui Transport vs. Loctek Ergonomic Technology |
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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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