Correlation Between CITIC Heavy and Bowman Consulting

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Can any of the company-specific risk be diversified away by investing in both CITIC Heavy and Bowman Consulting 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 Heavy and Bowman Consulting into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CITIC Heavy Industries and Bowman Consulting Group, you can compare the effects of market volatilities on CITIC Heavy and Bowman Consulting 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 Heavy with a short position of Bowman Consulting. Check out your portfolio center. Please also check ongoing floating volatility patterns of CITIC Heavy and Bowman Consulting.

Diversification Opportunities for CITIC Heavy and Bowman Consulting

-0.35
  Correlation Coefficient

Very good diversification

The 3 months correlation between CITIC and Bowman is -0.35. Overlapping area represents the amount of risk that can be diversified away by holding CITIC Heavy Industries and Bowman Consulting Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bowman Consulting and CITIC Heavy 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 Heavy Industries are associated (or correlated) with Bowman Consulting. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bowman Consulting has no effect on the direction of CITIC Heavy i.e., CITIC Heavy and Bowman Consulting go up and down completely randomly.

Pair Corralation between CITIC Heavy and Bowman Consulting

Assuming the 90 days trading horizon CITIC Heavy Industries is expected to generate 0.9 times more return on investment than Bowman Consulting. However, CITIC Heavy Industries is 1.11 times less risky than Bowman Consulting. It trades about 0.14 of its potential returns per unit of risk. Bowman Consulting Group is currently generating about -0.07 per unit of risk. If you would invest  536.00  in CITIC Heavy Industries on September 7, 2025 and sell it today you would earn a total of  145.00  from holding CITIC Heavy Industries or generate 27.05% return on investment over 90 days.
Time Period3 Months [change]
DirectionMoves Against 
StrengthInsignificant
Accuracy92.19%
ValuesDaily Returns

CITIC Heavy Industries  vs.  Bowman Consulting Group

 Performance 
       Timeline  
CITIC Heavy Industries 

Risk-Adjusted Performance

Good

 
Weak
 
Strong
Compared to the overall equity markets, risk-adjusted returns on investments in CITIC Heavy Industries are ranked lower than 11 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, CITIC Heavy sustained solid returns over the last few months and may actually be approaching a breakup point.
Bowman Consulting 

Risk-Adjusted Performance

Weakest

 
Weak
 
Strong
Over the last 90 days Bowman Consulting Group has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of conflicting performance in the last few months, the Stock's primary indicators remain very healthy which may send shares a bit higher in January 2026. The recent disarray may also be a sign of long period up-swing for the firm investors.

CITIC Heavy and Bowman Consulting Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with CITIC Heavy and Bowman Consulting

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

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