Correlation Between Hua Xia and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Hua Xia Bank and China Railway Construction, you can compare the effects of market volatilities on Hua Xia 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 Hua Xia with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hua Xia and China Railway.
Diversification Opportunities for Hua Xia and China Railway
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between Hua and China is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding Hua Xia Bank 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 Hua Xia 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 Hua Xia Bank 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 Hua Xia i.e., Hua Xia and China Railway go up and down completely randomly.
Pair Corralation between Hua Xia and China Railway
Assuming the 90 days trading horizon Hua Xia Bank is expected to generate 0.8 times more return on investment than China Railway. However, Hua Xia Bank is 1.25 times less risky than China Railway. It trades about -0.16 of its potential returns per unit of risk. China Railway Construction is currently generating about -0.3 per unit of risk. If you would invest 785.00 in Hua Xia Bank on October 23, 2024 and sell it today you would lose (30.00) from holding Hua Xia Bank or give up 3.82% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Hua Xia Bank vs. China Railway Construction
Performance |
| Timeline |
| Hua Xia Bank |
| China Railway Constr |
Hua Xia and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hua Xia and China Railway
The main advantage of trading using opposite Hua Xia and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hua Xia 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.| Hua Xia vs. Chengtun Mining Group | Hua Xia vs. Markor International Home | Hua Xia vs. Uroica Mining Safety | Hua Xia vs. Guocheng Mining Co |
| China Railway vs. Jiangsu Yanghe Brewery | China Railway vs. Eastroc Beverage Group | China Railway vs. Keda Clean Energy | China Railway vs. Hua Xia Bank |
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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon |