Correlation Between TRON and CITIC SECURITIES-H-

Can any of the company-specific risk be diversified away by investing in both TRON and CITIC SECURITIES-H- 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 TRON and CITIC SECURITIES-H- into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between TRON and CITIC SECURITIES H , you can compare the effects of market volatilities on TRON and CITIC SECURITIES-H- 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 TRON with a short position of CITIC SECURITIES-H-. Check out your portfolio center. Please also check ongoing floating volatility patterns of TRON and CITIC SECURITIES-H-.

Diversification Opportunities for TRON and CITIC SECURITIES-H-

0.35

Correlation Coefficient

TRON  CITIC SECURITIES-H-

Weak diversification

The 3 months correlation between TRON and CITIC is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding TRON and CITIC SECURITIES H in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC SECURITIES-H- and TRON 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 TRON are associated (or correlated) with CITIC SECURITIES-H-. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC SECURITIES-H- has no effect on the direction of TRON i.e., TRON and CITIC SECURITIES-H- go up and down completely randomly.

Pair Corralation between TRON and CITIC SECURITIES-H-

Assuming the 90 days trading horizon TRON is expected to generate 1.58 times more return on investment than CITIC SECURITIES-H-. However, TRON is 1.58 times more volatile than CITIC SECURITIES H . It trades about -0.06 of its potential returns per unit of risk. CITIC SECURITIES H is currently generating about -0.21 per unit of risk. If you would invest  27.00  in TRON on October 10, 2024 and sell it today you would lose (2.00) from holding TRON or give up 7.41% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Very Weak
Accuracy	80.95%
Values	Daily Returns

TRON  vs.  CITIC SECURITIES H

TRON

Risk-Adjusted Performance

7 of 100

OK

Compared to the overall equity markets, risk-adjusted returns on investments in TRON are ranked lower than 7 (%) of all global equities and portfolios over the last 90 days. In spite of rather unsteady basic indicators, TRON exhibited solid returns over the last few months and may actually be approaching a breakup point.

CITIC SECURITIES-H-

Risk-Adjusted Performance

3 of 100

Very Weak

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC SECURITIES H are ranked lower than 3 (%) of all global equities and portfolios over the last 90 days. In spite of comparatively fragile basic indicators, CITIC SECURITIES-H- may actually be approaching a critical reversion point that can send shares even higher in February 2025.

Pair Trading with TRON and CITIC SECURITIES-H-

The main advantage of trading using opposite TRON and CITIC SECURITIES-H- positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TRON position performs unexpectedly, CITIC SECURITIES-H- 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 SECURITIES-H- will offset losses from the drop in CITIC SECURITIES-H-'s long position.

The idea behind TRON and CITIC SECURITIES H pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.