Correlation Between CIMB Group and China Steel
Can any of the company-specific risk be diversified away by investing in both CIMB Group and China Steel 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 CIMB Group and China Steel into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CIMB Group Holdings and China Steel, you can compare the effects of market volatilities on CIMB Group and China Steel 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 CIMB Group with a short position of China Steel. Check out your portfolio center. Please also check ongoing floating volatility patterns of CIMB Group and China Steel.
Diversification Opportunities for CIMB Group and China Steel
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CIMB and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CIMB Group Holdings and China Steel in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Steel and CIMB Group 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 CIMB Group Holdings are associated (or correlated) with China Steel. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Steel has no effect on the direction of CIMB Group i.e., CIMB Group and China Steel go up and down completely randomly.
Pair Corralation between CIMB Group and China Steel
If you would invest 2,877 in China Steel on January 25, 2024 and sell it today you would earn a total of 0.00 from holding China Steel or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CIMB Group Holdings vs. China Steel
Performance |
| Timeline |
| CIMB Group Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| China Steel |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CIMB Group and China Steel Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CIMB Group and China Steel
The main advantage of trading using opposite CIMB Group and China Steel positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CIMB Group position performs unexpectedly, China Steel 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 Steel will offset losses from the drop in China Steel's long position.| CIMB Group vs. Kasikornbank Public Co | CIMB Group vs. Turkiye Garanti Bankasi | CIMB Group vs. Hang Seng Bank | CIMB Group vs. PT Bank Rakyat |
| China Steel vs. Noble plc | China Steel vs. Hanover Foods | China Steel vs. NH Foods Ltd | China Steel vs. Natural Alternatives International |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
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