Correlation Between COMPUTER MODELLING and CITIC

Can any of the company-specific risk be diversified away by investing in both COMPUTER MODELLING 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 COMPUTER MODELLING and CITIC into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between COMPUTER MODELLING and CITIC LTD ADR5, you can compare the effects of market volatilities on COMPUTER MODELLING 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 COMPUTER MODELLING with a short position of CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of COMPUTER MODELLING and CITIC.

Diversification Opportunities for COMPUTER MODELLING and CITIC

0.11

Correlation Coefficient

COMPUTER MODELLING  CITIC

Average diversification

The 3 months correlation between COMPUTER and CITIC is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding COMPUTER MODELLING and CITIC LTD ADR5 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC LTD ADR5 and COMPUTER MODELLING 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 COMPUTER MODELLING 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 LTD ADR5 has no effect on the direction of COMPUTER MODELLING i.e., COMPUTER MODELLING and CITIC go up and down completely randomly.

Pair Corralation between COMPUTER MODELLING and CITIC

Assuming the 90 days trading horizon COMPUTER MODELLING is expected to generate 34.41 times less return on investment than CITIC. But when comparing it to its historical volatility, COMPUTER MODELLING is 54.42 times less risky than CITIC. It trades about 0.13 of its potential returns per unit of risk. CITIC LTD ADR5 is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest  613.00  in CITIC LTD ADR5 on September 9, 2025 and sell it today you would earn a total of  52.00  from holding CITIC LTD ADR5 or generate 8.48% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Insignificant
Accuracy	100.0%
Values	Daily Returns

COMPUTER MODELLING  vs.  CITIC LTD ADR5

COMPUTER MODELLING

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in COMPUTER MODELLING are ranked lower than 9 (%) of all global equities and portfolios over the last 90 days. In spite of rather sound forward-looking indicators, COMPUTER MODELLING is not utilizing all of its potentials. The newest stock price tumult, may contribute to shorter-term losses for the shareholders.

CITIC LTD ADR5

Risk-Adjusted Performance

Mild

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC LTD ADR5 are ranked lower than 6 (%) of all global equities and portfolios over the last 90 days. Despite nearly fragile technical and fundamental indicators, CITIC may actually be approaching a critical reversion point that can send shares even higher in January 2026.

Pair Trading with COMPUTER MODELLING and CITIC

The main advantage of trading using opposite COMPUTER MODELLING and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COMPUTER MODELLING 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.

The idea behind COMPUTER MODELLING and CITIC LTD ADR5 pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Cryptocurrency Center module to build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency.