Correlation Between Shandong Publishing and China Railway
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By analyzing existing cross correlation between Shandong Publishing Media and China Railway Construction, you can compare the effects of market volatilities on Shandong Publishing 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 Shandong Publishing with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shandong Publishing and China Railway.
Diversification Opportunities for Shandong Publishing and China Railway
-0.69 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between Shandong and China is -0.69. Overlapping area represents the amount of risk that can be diversified away by holding Shandong Publishing Media 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 Shandong Publishing 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 Shandong Publishing Media 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 Shandong Publishing i.e., Shandong Publishing and China Railway go up and down completely randomly.
Pair Corralation between Shandong Publishing and China Railway
Assuming the 90 days trading horizon Shandong Publishing Media is expected to generate 1.11 times more return on investment than China Railway. However, Shandong Publishing is 1.11 times more volatile than China Railway Construction. It trades about 0.06 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.02 per unit of risk. If you would invest 608.00 in Shandong Publishing Media on September 1, 2024 and sell it today you would earn a total of 457.00 from holding Shandong Publishing Media or generate 75.16% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shandong Publishing Media vs. China Railway Construction
Performance |
| Timeline |
| Shandong Publishing Media |
| China Railway Constr |
Shandong Publishing and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shandong Publishing and China Railway
The main advantage of trading using opposite Shandong Publishing and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shandong Publishing 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.| Shandong Publishing vs. Cambricon Technologies Corp | Shandong Publishing vs. Loongson Technology Corp | Shandong Publishing vs. Shenzhen Fortune Trend | Shandong Publishing vs. Chongqing Road Bridge |
| China Railway vs. Harbin Air Conditioning | China Railway vs. MayAir Technology Co | China Railway vs. Heilongjiang Publishing Media | China Railway vs. Shandong 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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