Correlation Between China Railway and Shenzhen Sunlord
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Shenzhen Sunlord Electronics, you can compare the effects of market volatilities on China Railway and Shenzhen Sunlord 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 Shenzhen Sunlord. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Shenzhen Sunlord.
Diversification Opportunities for China Railway and Shenzhen Sunlord
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shenzhen is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Shenzhen Sunlord Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Sunlord Ele 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 Group are associated (or correlated) with Shenzhen Sunlord. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Sunlord Ele has no effect on the direction of China Railway i.e., China Railway and Shenzhen Sunlord go up and down completely randomly.
Pair Corralation between China Railway and Shenzhen Sunlord
Assuming the 90 days trading horizon China Railway is expected to generate 7.51 times less return on investment than Shenzhen Sunlord. But when comparing it to its historical volatility, China Railway Group is 1.22 times less risky than Shenzhen Sunlord. It trades about 0.02 of its potential returns per unit of risk. Shenzhen Sunlord Electronics is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 2,948 in Shenzhen Sunlord Electronics on August 31, 2024 and sell it today you would earn a total of 158.00 from holding Shenzhen Sunlord Electronics or generate 5.36% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Shenzhen Sunlord Electronics
Performance |
| Timeline |
| China Railway Group |
| Shenzhen Sunlord Ele |
China Railway and Shenzhen Sunlord Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Shenzhen Sunlord
The main advantage of trading using opposite China Railway and Shenzhen Sunlord positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Shenzhen Sunlord 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 Shenzhen Sunlord will offset losses from the drop in Shenzhen Sunlord's long position.| China Railway vs. Shanghai Xinhua Media | China Railway vs. Lonkey Industrial Co | China Railway vs. Focus Media Information | China Railway vs. Shuhua Sports Co |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
Other Complementary Tools
| Portfolio Manager State of the art Portfolio Manager to monitor and improve performance of your invested capital | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |