Correlation Between China Railway and Marssenger Kitchenware
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Marssenger Kitchenware Co, you can compare the effects of market volatilities on China Railway and Marssenger Kitchenware 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 Marssenger Kitchenware. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Marssenger Kitchenware.
Diversification Opportunities for China Railway and Marssenger Kitchenware
0.87 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Marssenger is 0.87. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Marssenger Kitchenware Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marssenger Kitchenware 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 Marssenger Kitchenware. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marssenger Kitchenware has no effect on the direction of China Railway i.e., China Railway and Marssenger Kitchenware go up and down completely randomly.
Pair Corralation between China Railway and Marssenger Kitchenware
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.74 times more return on investment than Marssenger Kitchenware. However, China Railway Group is 1.35 times less risky than Marssenger Kitchenware. It trades about -0.05 of its potential returns per unit of risk. Marssenger Kitchenware Co is currently generating about -0.12 per unit of risk. If you would invest 655.00 in China Railway Group on August 27, 2024 and sell it today you would lose (18.00) from holding China Railway Group or give up 2.75% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Marssenger Kitchenware Co
Performance |
| Timeline |
| China Railway Group |
| Marssenger Kitchenware |
China Railway and Marssenger Kitchenware Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Marssenger Kitchenware
The main advantage of trading using opposite China Railway and Marssenger Kitchenware positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Marssenger Kitchenware 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 Marssenger Kitchenware will offset losses from the drop in Marssenger Kitchenware's long position.| China Railway vs. Hoshine Silicon Ind | China Railway vs. Glodon Software Co | China Railway vs. Tianjin Ruixin Technology | China Railway vs. Linewell Software Co |
| Marssenger Kitchenware vs. China Petroleum Chemical | Marssenger Kitchenware vs. PetroChina Co Ltd | Marssenger Kitchenware vs. China State Construction | Marssenger Kitchenware vs. China Railway Group |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
Other Complementary Tools
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments |