Correlation Between CITIC and Datametrex

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

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

Diversification Opportunities for CITIC and Datametrex

-0.75

Correlation Coefficient

CITIC  Datametrex

Pay attention - limited upside

The 3 months correlation between CITIC and Datametrex is -0.75. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Limited and Datametrex AI Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Datametrex AI Limited and CITIC 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 Limited are associated (or correlated) with Datametrex. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Datametrex AI Limited has no effect on the direction of CITIC i.e., CITIC and Datametrex go up and down completely randomly.

Pair Corralation between CITIC and Datametrex

Assuming the 90 days horizon CITIC Limited is expected to generate 0.23 times more return on investment than Datametrex. However, CITIC Limited is 4.29 times less risky than Datametrex. It trades about 0.07 of its potential returns per unit of risk. Datametrex AI Limited is currently generating about 0.0 per unit of risk. If you would invest  122.00  in CITIC Limited on May 4, 2025 and sell it today you would earn a total of  9.00  from holding CITIC Limited or generate 7.38% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	96.88%
Values	Daily Returns

CITIC Limited  vs.  Datametrex AI Limited

CITIC Limited

Risk-Adjusted Performance

Modest

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Limited are ranked lower than 5 (%) of all global equities and portfolios over the last 90 days. Despite nearly weak fundamental indicators, CITIC may actually be approaching a critical reversion point that can send shares even higher in September 2025.

Datametrex AI Limited

Risk-Adjusted Performance

Very Weak

Over the last 90 days Datametrex AI Limited has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Datametrex is not utilizing all of its potentials. The current stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with CITIC and Datametrex

The main advantage of trading using opposite CITIC and Datametrex positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CITIC position performs unexpectedly, Datametrex 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 Datametrex will offset losses from the drop in Datametrex's long position.

The idea behind CITIC Limited and Datametrex AI 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.

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 Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.