Correlation Between China Railway and V V
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and V V Food, you can compare the effects of market volatilities on China Railway and V V 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 V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and V V.
Diversification Opportunities for China Railway and V V
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and 600300 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food 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 V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of China Railway i.e., China Railway and V V go up and down completely randomly.
Pair Corralation between China Railway and V V
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the V V. In addition to that, China Railway is 1.21 times more volatile than V V Food. It trades about -0.01 of its total potential returns per unit of risk. V V Food is currently generating about -0.01 per unit of volatility. If you would invest 311.00 in V V Food on August 27, 2024 and sell it today you would lose (26.00) from holding V V Food or give up 8.36% 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. V V Food
Performance |
| Timeline |
| China Railway Group |
| V V Food |
China Railway and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and V V
The main advantage of trading using opposite China Railway and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, V V 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 V V will offset losses from the drop in V V'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 |
| V V vs. China Petroleum Chemical | V V vs. PetroChina Co Ltd | V V vs. China State Construction | V V 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 Balance Of Power module to check stock momentum by analyzing Balance Of Power indicator and other technical ratios.
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