Correlation Between China Railway and Ziel Home
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By analyzing existing cross correlation between China Railway Construction and Ziel Home Furnishing, you can compare the effects of market volatilities on China Railway and Ziel Home 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 China Railway with a short position of Ziel Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Ziel Home.
Diversification Opportunities for China Railway and Ziel Home
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Ziel is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Ziel Home Furnishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ziel Home Furnishing and China Railway 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 China Railway Construction are associated (or correlated) with Ziel Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ziel Home Furnishing has no effect on the direction of China Railway i.e., China Railway and Ziel Home go up and down completely randomly.
Pair Corralation between China Railway and Ziel Home
Assuming the 90 days trading horizon China Railway Construction is expected to under-perform the Ziel Home. In addition to that, China Railway is 1.03 times more volatile than Ziel Home Furnishing. It trades about 0.0 of its total potential returns per unit of risk. Ziel Home Furnishing is currently generating about 0.02 per unit of volatility. If you would invest 2,000 in Ziel Home Furnishing on August 29, 2024 and sell it today you would earn a total of 13.00 from holding Ziel Home Furnishing or generate 0.65% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Ziel Home Furnishing
Performance |
| Timeline |
| China Railway Constr |
| Ziel Home Furnishing |
China Railway and Ziel Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Ziel Home
The main advantage of trading using opposite China Railway and Ziel Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Ziel Home 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 Ziel Home will offset losses from the drop in Ziel Home's long position.| China Railway vs. Guangxi Wuzhou Communications | China Railway vs. UE Furniture Co | China Railway vs. Dr Peng Telecom | China Railway vs. Oppein Home Group |
| Ziel Home vs. Agricultural Bank of | Ziel Home vs. Industrial and Commercial | Ziel Home vs. Bank of China | Ziel Home vs. China Construction 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 Latest Portfolios module to quick portfolio dashboard that showcases your latest portfolios.
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