Correlation Between Shenyang Blue and China Railway
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By analyzing existing cross correlation between Shenyang Blue Silver and China Railway Construction, you can compare the effects of market volatilities on Shenyang Blue 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 Shenyang Blue with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenyang Blue and China Railway.
Diversification Opportunities for Shenyang Blue and China Railway
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenyang and China is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Shenyang Blue Silver 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 Shenyang Blue 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 Shenyang Blue Silver 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 Shenyang Blue i.e., Shenyang Blue and China Railway go up and down completely randomly.
Pair Corralation between Shenyang Blue and China Railway
Assuming the 90 days trading horizon Shenyang Blue Silver is expected to generate 2.33 times more return on investment than China Railway. However, Shenyang Blue is 2.33 times more volatile than China Railway Construction. It trades about -0.06 of its potential returns per unit of risk. China Railway Construction is currently generating about -0.18 per unit of risk. If you would invest 2,204 in Shenyang Blue Silver on November 3, 2024 and sell it today you would lose (68.00) from holding Shenyang Blue Silver or give up 3.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenyang Blue Silver vs. China Railway Construction
Performance |
| Timeline |
| Shenyang Blue Silver |
| China Railway Constr |
Shenyang Blue and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenyang Blue and China Railway
The main advantage of trading using opposite Shenyang Blue and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenyang Blue 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.| Shenyang Blue vs. Industrial and Commercial | Shenyang Blue vs. Kweichow Moutai Co | Shenyang Blue vs. Agricultural Bank of | Shenyang Blue vs. China Mobile Limited |
| China Railway vs. Jiaozuo Wanfang Aluminum | China Railway vs. Jiangsu Financial Leasing | China Railway vs. Heilongjiang Transport Development | China Railway vs. Tongxing Environmental Protection |
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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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