Correlation Between Xinke Material and China Citic
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By analyzing existing cross correlation between Xinke Material and China Citic Bank, you can compare the effects of market volatilities on Xinke Material 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 Xinke Material with a short position of China Citic. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xinke Material and China Citic.
Diversification Opportunities for Xinke Material and China Citic
0.45 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Xinke and China is 0.45. Overlapping area represents the amount of risk that can be diversified away by holding Xinke Material 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 Xinke Material 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 Xinke Material 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 Xinke Material i.e., Xinke Material and China Citic go up and down completely randomly.
Pair Corralation between Xinke Material and China Citic
Assuming the 90 days trading horizon Xinke Material is expected to generate 2.14 times more return on investment than China Citic. However, Xinke Material is 2.14 times more volatile than China Citic Bank. It trades about 0.29 of its potential returns per unit of risk. China Citic Bank is currently generating about 0.06 per unit of risk. If you would invest 186.00 in Xinke Material on September 25, 2024 and sell it today you would earn a total of 185.00 from holding Xinke Material or generate 99.46% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Weak |
Accuracy | 100.0% |
Values | Daily Returns |
Xinke Material vs. China Citic Bank
Performance |
Timeline |
Xinke Material |
China Citic Bank |
Xinke Material and China Citic Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Xinke Material and China Citic
The main advantage of trading using opposite Xinke Material and China Citic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xinke Material 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.Xinke Material vs. Wanhua Chemical Group | Xinke Material vs. Shandong Gold Mining | Xinke Material vs. Rongsheng Petrochemical Co | Xinke Material vs. Inner Mongolia BaoTou |
China Citic vs. Super Dragon Engineering Plastics | China Citic vs. Sinofibers Technology Co | China Citic vs. Kuangda Technology Group | China Citic vs. Xinke Material |
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 Global Markets Map module to get a quick overview of global market snapshot using zoomable world map. Drill down to check world indexes.
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