Correlation Between Guangzhou Jointas and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Guangzhou Jointas Chemical and China Railway Construction, you can compare the effects of market volatilities on Guangzhou Jointas 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 Guangzhou Jointas with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Guangzhou Jointas and China Railway.
Diversification Opportunities for Guangzhou Jointas and China Railway
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Guangzhou and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Guangzhou Jointas Chemical 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 Guangzhou Jointas 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 Guangzhou Jointas Chemical 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 Guangzhou Jointas i.e., Guangzhou Jointas and China Railway go up and down completely randomly.
Pair Corralation between Guangzhou Jointas and China Railway
Assuming the 90 days trading horizon Guangzhou Jointas Chemical is expected to under-perform the China Railway. In addition to that, Guangzhou Jointas is 2.24 times more volatile than China Railway Construction. It trades about -0.17 of its total potential returns per unit of risk. China Railway Construction is currently generating about -0.28 per unit of volatility. If you would invest 464.00 in China Railway Construction on October 17, 2024 and sell it today you would lose (43.00) from holding China Railway Construction or give up 9.27% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Guangzhou Jointas Chemical vs. China Railway Construction
Performance |
| Timeline |
| Guangzhou Jointas |
| China Railway Constr |
Guangzhou Jointas and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Guangzhou Jointas and China Railway
The main advantage of trading using opposite Guangzhou Jointas and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Guangzhou Jointas 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.| Guangzhou Jointas vs. Zijin Mining Group | Guangzhou Jointas vs. Wanhua Chemical Group | Guangzhou Jointas vs. Baoshan Iron Steel | Guangzhou Jointas vs. Shandong Gold Mining |
| China Railway vs. Unisplendour Corp | China Railway vs. Jiangsu Financial Leasing | China Railway vs. Eastern Air Logistics | China Railway vs. Panda Financial Holding |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
Other Complementary Tools
| Positions Ratings Determine portfolio positions ratings based on digital equity recommendations. Macroaxis instant position ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Price Transformation Use Price Transformation models to analyze the depth of different equity instruments across global markets |