Correlation Between HeBei Jinniu and China Railway
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By analyzing existing cross correlation between HeBei Jinniu Chemical and China Railway Group, you can compare the effects of market volatilities on HeBei Jinniu 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 HeBei Jinniu with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of HeBei Jinniu and China Railway.
Diversification Opportunities for HeBei Jinniu and China Railway
-0.19 | Correlation Coefficient |
Good diversification
The 3 months correlation between HeBei and China is -0.19. Overlapping area represents the amount of risk that can be diversified away by holding HeBei Jinniu Chemical 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 HeBei Jinniu 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 HeBei Jinniu Chemical 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 HeBei Jinniu i.e., HeBei Jinniu and China Railway go up and down completely randomly.
Pair Corralation between HeBei Jinniu and China Railway
Assuming the 90 days trading horizon HeBei Jinniu Chemical is expected to generate 2.57 times more return on investment than China Railway. However, HeBei Jinniu is 2.57 times more volatile than China Railway Group. It trades about -0.08 of its potential returns per unit of risk. China Railway Group is currently generating about -0.41 per unit of risk. If you would invest 580.00 in HeBei Jinniu Chemical on October 13, 2024 and sell it today you would lose (43.00) from holding HeBei Jinniu Chemical or give up 7.41% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
HeBei Jinniu Chemical vs. China Railway Group
Performance |
| Timeline |
| HeBei Jinniu Chemical |
| China Railway Group |
HeBei Jinniu and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with HeBei Jinniu and China Railway
The main advantage of trading using opposite HeBei Jinniu and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if HeBei Jinniu 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.| HeBei Jinniu vs. Jinhui Liquor Co | HeBei Jinniu vs. Bomesc Offshore Engineering | HeBei Jinniu vs. Anhui Jianghuai Automobile | HeBei Jinniu vs. Guangxi Wuzhou Communications |
| China Railway vs. Hefei Metalforming Mach | China Railway vs. State Grid InformationCommunication | China Railway vs. ZYF Lopsking Aluminum | China Railway vs. Unisplendour Corp |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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