Correlation Between Shenzhen Urban and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Shenzhen Urban Transport and China Railway Group, you can compare the effects of market volatilities on Shenzhen Urban 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 Shenzhen Urban with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen Urban and China Railway.
Diversification Opportunities for Shenzhen Urban and China Railway
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shenzhen and China is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen Urban Transport and China Railway Group in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Group and Shenzhen Urban 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 Shenzhen Urban Transport 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 Group has no effect on the direction of Shenzhen Urban i.e., Shenzhen Urban and China Railway go up and down completely randomly.
Pair Corralation between Shenzhen Urban and China Railway
Assuming the 90 days trading horizon Shenzhen Urban Transport is expected to under-perform the China Railway. In addition to that, Shenzhen Urban is 2.53 times more volatile than China Railway Group. It trades about -0.19 of its total potential returns per unit of risk. China Railway Group is currently generating about -0.28 per unit of volatility. If you would invest 639.00 in China Railway Group on November 1, 2024 and sell it today you would lose (47.00) from holding China Railway Group or give up 7.36% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shenzhen Urban Transport vs. China Railway Group
Performance |
| Timeline |
| Shenzhen Urban Transport |
| China Railway Group |
Shenzhen Urban and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shenzhen Urban and China Railway
The main advantage of trading using opposite Shenzhen Urban and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen Urban 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.| Shenzhen Urban vs. BTG Hotels Group | Shenzhen Urban vs. Sinomach Automobile Co | Shenzhen Urban vs. Bingo Software Co | Shenzhen Urban vs. Beijing Baolande Software |
| China Railway vs. Shenzhen Urban Transport | China Railway vs. Heilongjiang Transport Development | China Railway vs. China Sports Industry | China Railway vs. Fujian Longzhou Transportation |
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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.
Other Complementary Tools
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Financial Widgets Easily integrated Macroaxis content with over 30 different plug-and-play financial widgets |