Correlation Between China Railway and Duzhe Publishing
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By analyzing existing cross correlation between China Railway Materials and Duzhe Publishing Media, you can compare the effects of market volatilities on China Railway and Duzhe Publishing 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 China Railway with a short position of Duzhe Publishing. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Duzhe Publishing.
Diversification Opportunities for China Railway and Duzhe Publishing
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Duzhe is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Materials and Duzhe Publishing Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Duzhe Publishing Media and China Railway 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 China Railway Materials are associated (or correlated) with Duzhe Publishing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Duzhe Publishing Media has no effect on the direction of China Railway i.e., China Railway and Duzhe Publishing go up and down completely randomly.
Pair Corralation between China Railway and Duzhe Publishing
Assuming the 90 days trading horizon China Railway is expected to generate 9.22 times less return on investment than Duzhe Publishing. But when comparing it to its historical volatility, China Railway Materials is 2.11 times less risky than Duzhe Publishing. It trades about 0.04 of its potential returns per unit of risk. Duzhe Publishing Media is currently generating about 0.17 of returns per unit of risk over similar time horizon. If you would invest 610.00 in Duzhe Publishing Media on September 12, 2024 and sell it today you would earn a total of 69.00 from holding Duzhe Publishing Media or generate 11.31% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Materials vs. Duzhe Publishing Media
Performance |
| Timeline |
| China Railway Materials |
| Duzhe Publishing Media |
China Railway and Duzhe Publishing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Duzhe Publishing
The main advantage of trading using opposite China Railway and Duzhe Publishing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Duzhe Publishing 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 Duzhe Publishing will offset losses from the drop in Duzhe Publishing's long position.| China Railway vs. Lutian Machinery Co | China Railway vs. PetroChina Co Ltd | China Railway vs. Bank of China | China Railway vs. Gansu Jiu Steel |
| Duzhe Publishing vs. Kweichow Moutai Co | Duzhe Publishing vs. Shenzhen Mindray Bio Medical | Duzhe Publishing vs. G bits Network Technology | Duzhe Publishing vs. Beijing Roborock Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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