Correlation Between China Railway and Grandblue Environment
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By analyzing existing cross correlation between China Railway Group and Grandblue Environment Co, you can compare the effects of market volatilities on China Railway and Grandblue Environment 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 Grandblue Environment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Grandblue Environment.
Diversification Opportunities for China Railway and Grandblue Environment
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Grandblue is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Grandblue Environment Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grandblue Environment 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 Grandblue Environment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grandblue Environment has no effect on the direction of China Railway i.e., China Railway and Grandblue Environment go up and down completely randomly.
Pair Corralation between China Railway and Grandblue Environment
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Grandblue Environment. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 1.09 times less risky than Grandblue Environment. The stock trades about -0.41 of its potential returns per unit of risk. The Grandblue Environment Co is currently generating about -0.07 of returns per unit of risk over similar time horizon. If you would invest 2,249 in Grandblue Environment Co on October 13, 2024 and sell it today you would lose (55.00) from holding Grandblue Environment Co or give up 2.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Grandblue Environment Co
Performance |
| Timeline |
| China Railway Group |
| Grandblue Environment |
China Railway and Grandblue Environment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Grandblue Environment
The main advantage of trading using opposite China Railway and Grandblue Environment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Grandblue Environment 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 Grandblue Environment will offset losses from the drop in Grandblue Environment's long position.| China Railway vs. Hefei Metalforming Mach | China Railway vs. State Grid InformationCommunication | China Railway vs. ZYF Lopsking Aluminum | China Railway vs. Unisplendour Corp |
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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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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