Correlation Between Chongqing Sulian and China Railway
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By analyzing existing cross correlation between Chongqing Sulian Plastic and China Railway Construction, you can compare the effects of market volatilities on Chongqing Sulian 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 Chongqing Sulian with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chongqing Sulian and China Railway.
Diversification Opportunities for Chongqing Sulian and China Railway
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Chongqing and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Chongqing Sulian Plastic 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 Chongqing Sulian 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 Chongqing Sulian Plastic 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 Chongqing Sulian i.e., Chongqing Sulian and China Railway go up and down completely randomly.
Pair Corralation between Chongqing Sulian and China Railway
Assuming the 90 days trading horizon Chongqing Sulian Plastic is expected to under-perform the China Railway. In addition to that, Chongqing Sulian is 1.61 times more volatile than China Railway Construction. It trades about -0.01 of its total potential returns per unit of risk. China Railway Construction is currently generating about 0.03 per unit of volatility. If you would invest 770.00 in China Railway Construction on September 26, 2024 and sell it today you would earn a total of 169.00 from holding China Railway Construction or generate 21.95% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 76.31% |
| Values | Daily Returns |
Chongqing Sulian Plastic vs. China Railway Construction
Performance |
| Timeline |
| Chongqing Sulian Plastic |
| China Railway Constr |
Chongqing Sulian and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chongqing Sulian and China Railway
The main advantage of trading using opposite Chongqing Sulian and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chongqing Sulian 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.| Chongqing Sulian vs. China Life Insurance | Chongqing Sulian vs. Cinda Securities Co | Chongqing Sulian vs. Piotech Inc A | Chongqing Sulian vs. Dongxing Sec Co |
| China Railway vs. Cangzhou Mingzhu Plastic | China Railway vs. Chongqing Sulian Plastic | China Railway vs. GRIPM Advanced Materials | China Railway vs. Advanced Technology Materials |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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