Correlation Between Invengo Information and China Railway
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By analyzing existing cross correlation between Invengo Information Technology and China Railway Construction, you can compare the effects of market volatilities on Invengo Information and China Railway 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 Invengo Information with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Invengo Information and China Railway.
Diversification Opportunities for Invengo Information and China Railway
0.17 | Correlation Coefficient |
Average diversification
The 3 months correlation between Invengo and China is 0.17. Overlapping area represents the amount of risk that can be diversified away by holding Invengo Information Technology and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr and Invengo Information 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 Invengo Information Technology are associated (or correlated) with China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Invengo Information i.e., Invengo Information and China Railway go up and down completely randomly.
Pair Corralation between Invengo Information and China Railway
Assuming the 90 days trading horizon Invengo Information Technology is expected to under-perform the China Railway. In addition to that, Invengo Information is 3.22 times more volatile than China Railway Construction. It trades about -0.3 of its total potential returns per unit of risk. China Railway Construction is currently generating about -0.34 per unit of volatility. If you would invest 917.00 in China Railway Construction on October 14, 2024 and sell it today you would lose (80.00) from holding China Railway Construction or give up 8.72% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Invengo Information Technology vs. China Railway Construction
Performance |
| Timeline |
| Invengo Information |
| China Railway Constr |
Invengo Information and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Invengo Information and China Railway
The main advantage of trading using opposite Invengo Information and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Invengo Information position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| Invengo Information vs. Rising Nonferrous Metals | Invengo Information vs. Shenzhen Clou Electronics | Invengo Information vs. Leyard Optoelectronic | Invengo Information vs. Jahen Household Products |
| China Railway vs. Guotai Epoint Software | China Railway vs. Invengo Information Technology | China Railway vs. Shenzhen SDG Information | China Railway vs. Glodon Software Co |
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 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.
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