Correlation Between China Railway and Hangzhou Gisway
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Hangzhou Gisway Information, you can compare the effects of market volatilities on China Railway and Hangzhou Gisway 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 Hangzhou Gisway. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Hangzhou Gisway.
Diversification Opportunities for China Railway and Hangzhou Gisway
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hangzhou is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Hangzhou Gisway Information in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Gisway Info 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 Hangzhou Gisway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Gisway Info has no effect on the direction of China Railway i.e., China Railway and Hangzhou Gisway go up and down completely randomly.
Pair Corralation between China Railway and Hangzhou Gisway
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Hangzhou Gisway. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 1.48 times less risky than Hangzhou Gisway. The stock trades about -0.02 of its potential returns per unit of risk. The Hangzhou Gisway Information is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 3,264 in Hangzhou Gisway Information on September 3, 2024 and sell it today you would lose (30.00) from holding Hangzhou Gisway Information or give up 0.92% 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. Hangzhou Gisway Information
Performance |
| Timeline |
| China Railway Group |
| Hangzhou Gisway Info |
China Railway and Hangzhou Gisway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Hangzhou Gisway
The main advantage of trading using opposite China Railway and Hangzhou Gisway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Hangzhou Gisway 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 Hangzhou Gisway will offset losses from the drop in Hangzhou Gisway's long position.| China Railway vs. Zhongtong Guomai Communication | China Railway vs. Ningbo Homelink Eco iTech | China Railway vs. Wuhan Yangtze Communication | China Railway vs. Railway Signal Communication |
| Hangzhou Gisway vs. Fujian Longzhou Transportation | Hangzhou Gisway vs. Hainan Haiqi Transportation | Hangzhou Gisway vs. Broadex Technologies Co | Hangzhou Gisway vs. Heilongjiang Transport Development |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
Other Complementary Tools
| Crypto Correlations Use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device | |
| Performance Analysis Check effects of mean-variance optimization against your current asset allocation | |
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. |