Correlation Between China Railway and Shenzhen INVT
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Shenzhen INVT Electric, you can compare the effects of market volatilities on China Railway and Shenzhen INVT 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 INVT. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Shenzhen INVT.
Diversification Opportunities for China Railway and Shenzhen INVT
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Shenzhen is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Shenzhen INVT Electric in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen INVT Electric 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 INVT. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen INVT Electric has no effect on the direction of China Railway i.e., China Railway and Shenzhen INVT go up and down completely randomly.
Pair Corralation between China Railway and Shenzhen INVT
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.83 times more return on investment than Shenzhen INVT. However, China Railway Group is 1.2 times less risky than Shenzhen INVT. It trades about 0.01 of its potential returns per unit of risk. Shenzhen INVT Electric is currently generating about -0.02 per unit of risk. If you would invest 559.00 in China Railway Group on October 25, 2024 and sell it today you would earn a total of 21.00 from holding China Railway Group or generate 3.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 99.79% |
| Values | Daily Returns |
China Railway Group vs. Shenzhen INVT Electric
Performance |
| Timeline |
| China Railway Group |
| Shenzhen INVT Electric |
China Railway and Shenzhen INVT Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Shenzhen INVT
The main advantage of trading using opposite China Railway and Shenzhen INVT positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Shenzhen INVT 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 INVT will offset losses from the drop in Shenzhen INVT's long position.| China Railway vs. State Grid InformationCommunication | China Railway vs. Digital China Information | China Railway vs. Olympic Circuit Technology | China Railway vs. Sublime China Information |
| Shenzhen INVT vs. Jiangsu Hoperun Software | Shenzhen INVT vs. Winner Medical Co | Shenzhen INVT vs. Thunder Software Technology | Shenzhen INVT vs. Xiangyu Medical 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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
Other Complementary Tools
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Price Exposure Probability Analyze equity upside and downside potential for a given time horizon across multiple markets | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Correlation Analysis Reduce portfolio risk simply by holding instruments which are not perfectly correlated | |
| Competition Analyzer Analyze and compare many basic indicators for a group of related or unrelated entities |