Correlation Between Long Yuan and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Long Yuan Construction and China Railway Construction, you can compare the effects of market volatilities on Long Yuan 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 Long Yuan with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Long Yuan and China Railway.
Diversification Opportunities for Long Yuan and China Railway
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Long and China is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Long Yuan Construction 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 Long Yuan 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 Long Yuan Construction 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 Long Yuan i.e., Long Yuan and China Railway go up and down completely randomly.
Pair Corralation between Long Yuan and China Railway
Assuming the 90 days trading horizon Long Yuan Construction is expected to generate 1.53 times more return on investment than China Railway. However, Long Yuan is 1.53 times more volatile than China Railway Construction. It trades about 0.12 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.1 per unit of risk. If you would invest 250.00 in Long Yuan Construction on September 1, 2024 and sell it today you would earn a total of 133.00 from holding Long Yuan Construction or generate 53.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
Long Yuan Construction vs. China Railway Construction
Performance |
| Timeline |
| Long Yuan Construction |
| China Railway Constr |
Long Yuan and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Long Yuan and China Railway
The main advantage of trading using opposite Long Yuan and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Long Yuan 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.| Long Yuan vs. Hua Xia Bank | Long Yuan vs. Allwin Telecommunication Co | Long Yuan vs. Agricultural Bank of | Long Yuan vs. Sunwave Communications Co |
| China Railway vs. Longjian Road Bridge | China Railway vs. Tibet Huayu Mining | China Railway vs. Heilongjiang Transport Development | China Railway vs. Yunnan Xiyi Industrial |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities | |
| My Watchlist Analysis Analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world |