Correlation Between CITIC Resources and Metro Pacific
Can any of the company-specific risk be diversified away by investing in both CITIC Resources and Metro Pacific 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 Metro Pacific 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 Metro Pacific Investments, you can compare the effects of market volatilities on CITIC Resources and Metro Pacific 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 Metro Pacific. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Resources and Metro Pacific.
Diversification Opportunities for CITIC Resources and Metro Pacific
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CITIC and Metro is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Resources Holdings and Metro Pacific Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Metro Pacific Investments 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 Metro Pacific. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Metro Pacific Investments has no effect on the direction of CITIC Resources i.e., CITIC Resources and Metro Pacific go up and down completely randomly.
Pair Corralation between CITIC Resources and Metro Pacific
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 | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
CITIC Resources Holdings vs. Metro Pacific Investments
Performance |
| Timeline |
| CITIC Resources Holdings |
| Metro Pacific Investments |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
CITIC Resources and Metro Pacific Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CITIC Resources and Metro Pacific
The main advantage of trading using opposite CITIC Resources and Metro Pacific positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC Resources position performs unexpectedly, Metro Pacific 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 Metro Pacific will offset losses from the drop in Metro Pacific's long position.| CITIC Resources vs. Churchill Resources | CITIC Resources vs. Western Troy Capital | CITIC Resources vs. Beyond Minerals | CITIC Resources vs. Altius Minerals |
| Metro Pacific vs. Shake Shack | Metro Pacific vs. Wingstop | Metro Pacific vs. Texas Roadhouse | Metro Pacific vs. Nuvalent |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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