Correlation Between Sunny Loan and China Railway
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By analyzing existing cross correlation between Sunny Loan Top and China Railway Group, you can compare the effects of market volatilities on Sunny Loan 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 Sunny Loan with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sunny Loan and China Railway.
Diversification Opportunities for Sunny Loan and China Railway
0.78 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Sunny and China is 0.78. Overlapping area represents the amount of risk that can be diversified away by holding Sunny Loan Top 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 Sunny Loan 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 Sunny Loan Top 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 Sunny Loan i.e., Sunny Loan and China Railway go up and down completely randomly.
Pair Corralation between Sunny Loan and China Railway
Assuming the 90 days trading horizon Sunny Loan Top is expected to generate 1.36 times more return on investment than China Railway. However, Sunny Loan is 1.36 times more volatile than China Railway Group. It trades about 0.05 of its potential returns per unit of risk. China Railway Group is currently generating about 0.02 per unit of risk. If you would invest 622.00 in Sunny Loan Top on August 30, 2024 and sell it today you would earn a total of 397.00 from holding Sunny Loan Top or generate 63.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sunny Loan Top vs. China Railway Group
Performance |
| Timeline |
| Sunny Loan Top |
| China Railway Group |
Sunny Loan and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sunny Loan and China Railway
The main advantage of trading using opposite Sunny Loan and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sunny Loan 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.| Sunny Loan vs. Agricultural Bank of | Sunny Loan vs. Industrial and Commercial | Sunny Loan vs. Bank of China | Sunny Loan vs. China Construction Bank |
| China Railway vs. Hangzhou Gisway Information | China Railway vs. ButOne Information Corp | China Railway vs. Chinese Universe Publishing | China Railway vs. Zhejiang Publishing Media |
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.
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