Correlation Between Datametrex and CITIC

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

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

Diversification Opportunities for Datametrex and CITIC

-0.63

Correlation Coefficient

Datametrex  CITIC

Excellent diversification

The 3 months correlation between Datametrex and CITIC is -0.63. Overlapping area represents the amount of risk that can be diversified away by holding Datametrex AI Limited and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited and Datametrex 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 Datametrex AI Limited 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 Datametrex i.e., Datametrex and CITIC go up and down completely randomly.

Pair Corralation between Datametrex and CITIC

Assuming the 90 days horizon Datametrex is expected to generate 3.51 times less return on investment than CITIC. In addition to that, Datametrex is 2.69 times more volatile than CITIC Limited. It trades about 0.01 of its total potential returns per unit of risk. CITIC Limited is currently generating about 0.05 per unit of volatility. If you would invest  122.00  in CITIC Limited on May 25, 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

Datametrex AI Limited  vs.  CITIC Limited

Datametrex AI Limited

Risk-Adjusted Performance

Weakest

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.

CITIC Limited

Risk-Adjusted Performance

Soft

Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Limited are ranked lower than 4 (%) 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.

Pair Trading with Datametrex and CITIC

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