Correlation Between Jardine Strategic and CITIC
Can any of the company-specific risk be diversified away by investing in both Jardine Strategic and CITIC 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 Jardine Strategic and CITIC into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Jardine Strategic Holdings and CITIC Limited, you can compare the effects of market volatilities on Jardine Strategic and 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 Jardine Strategic with a short position of CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of Jardine Strategic and CITIC.
Diversification Opportunities for Jardine Strategic and CITIC
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Jardine and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Jardine Strategic Holdings and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited and Jardine Strategic 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 Jardine Strategic Holdings are associated (or correlated) with CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Limited has no effect on the direction of Jardine Strategic i.e., Jardine Strategic and CITIC go up and down completely randomly.
Pair Corralation between Jardine Strategic and CITIC
If you would invest 0.00 in Jardine Strategic Holdings on January 20, 2024 and sell it today you would earn a total of 0.00 from holding Jardine Strategic Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.4% |
| Values | Daily Returns |
Jardine Strategic Holdings vs. CITIC Limited
Performance |
| Timeline |
| Jardine Strategic |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CITIC Limited |
Jardine Strategic and CITIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Jardine Strategic and CITIC
The main advantage of trading using opposite Jardine Strategic and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Jardine Strategic position performs unexpectedly, 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 CITIC will offset losses from the drop in CITIC's long position.| Jardine Strategic vs. Alto Ingredients | Jardine Strategic vs. Western Acquisition Ventures | Jardine Strategic vs. The Mosaic | Jardine Strategic vs. Highway Holdings Limited |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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