Correlation Between CSE Global and CITIC

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

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

Diversification Opportunities for CSE Global and CITIC

0.0

Correlation Coefficient

CSE Global  CITIC

Pay attention - limited upside

The 3 months correlation between CSE and CITIC is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CSE Global Ltd and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited and CSE Global 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 CSE Global Ltd 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 CSE Global i.e., CSE Global and CITIC go up and down completely randomly.

Pair Corralation between CSE Global and CITIC

If you would invest  122.00  in CITIC Limited on May 12, 2025 and sell it today you would earn a total of  29.00  from holding CITIC Limited or generate 23.77% return on investment over 90 days.

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

CSE Global Ltd  vs.  CITIC Limited

CSE Global

Risk-Adjusted Performance

Weakest

Over the last 90 days CSE Global Ltd has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fairly strong forward-looking indicators, CSE Global is not utilizing all of its potentials. The current stock price disturbance, may contribute to short-term losses for the investors.

CITIC Limited

Risk-Adjusted Performance

Fair

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Limited are ranked lower than 10 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, CITIC reported solid returns over the last few months and may actually be approaching a breakup point.

Pair Trading with CSE Global and CITIC

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

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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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.