Correlation Between CITIC Resources and Itau CorpBanca
Can any of the company-specific risk be diversified away by investing in both CITIC Resources and Itau CorpBanca 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 Itau CorpBanca 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 Itau CorpBanca ADR, you can compare the effects of market volatilities on CITIC Resources and Itau CorpBanca 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 Itau CorpBanca. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Resources and Itau CorpBanca.
Diversification Opportunities for CITIC Resources and Itau CorpBanca
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between CITIC and Itau is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Resources Holdings and Itau CorpBanca ADR in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Itau CorpBanca ADR 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 Itau CorpBanca. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Itau CorpBanca ADR has no effect on the direction of CITIC Resources i.e., CITIC Resources and Itau CorpBanca go up and down completely randomly.
Pair Corralation between CITIC Resources and Itau CorpBanca
If you would invest 1,073 in CITIC Resources Holdings on January 20, 2024 and sell it today you would earn a total of 96.00 from holding CITIC Resources Holdings or generate 8.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 4.55% |
| Values | Daily Returns |
CITIC Resources Holdings vs. Itau CorpBanca ADR
Performance |
| Timeline |
| CITIC Resources Holdings |
| Itau CorpBanca ADR |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CITIC Resources and Itau CorpBanca Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Resources and Itau CorpBanca
The main advantage of trading using opposite CITIC Resources and Itau CorpBanca positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Resources position performs unexpectedly, Itau CorpBanca 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 Itau CorpBanca will offset losses from the drop in Itau CorpBanca's long position.| CITIC Resources vs. Avarone Metals | CITIC Resources vs. Azimut Exploration | CITIC Resources vs. Benton Resources |
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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 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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