Correlation Between CITIC Resources and Apple
Can any of the company-specific risk be diversified away by investing in both CITIC Resources and Apple 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 CITIC Resources and Apple into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Resources Holdings and Apple Inc, you can compare the effects of market volatilities on CITIC Resources and Apple 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 CITIC Resources with a short position of Apple. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Resources and Apple.
Diversification Opportunities for CITIC Resources and Apple
-0.72 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIC and Apple is -0.72. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Resources Holdings and Apple Inc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Apple Inc and CITIC Resources 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 CITIC Resources Holdings are associated (or correlated) with Apple. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Apple Inc has no effect on the direction of CITIC Resources i.e., CITIC Resources and Apple go up and down completely randomly.
Pair Corralation between CITIC Resources and Apple
Assuming the 90 days horizon CITIC Resources Holdings is expected to generate 2.35 times more return on investment than Apple. However, CITIC Resources is 2.35 times more volatile than Apple Inc. It trades about 0.18 of its potential returns per unit of risk. Apple Inc is currently generating about -0.01 per unit of risk. If you would invest 1,073 in CITIC Resources Holdings on January 26, 2024 and sell it today you would earn a total of 133.00 from holding CITIC Resources Holdings or generate 12.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CITIC Resources Holdings vs. Apple Inc
Performance |
| Timeline |
| CITIC Resources Holdings |
| Apple Inc |
CITIC Resources and Apple Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Resources and Apple
The main advantage of trading using opposite CITIC Resources and Apple positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Resources position performs unexpectedly, Apple 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 Apple will offset losses from the drop in Apple's long position.| CITIC Resources vs. Churchill Resources | CITIC Resources vs. Western Troy Capital | CITIC Resources vs. Beyond Minerals | CITIC Resources vs. Altius Minerals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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