Correlation Between China Railway and Xinjiang Tianrun
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By analyzing existing cross correlation between China Railway Group and Xinjiang Tianrun Dairy, you can compare the effects of market volatilities on China Railway and Xinjiang Tianrun 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 Xinjiang Tianrun. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Xinjiang Tianrun.
Diversification Opportunities for China Railway and Xinjiang Tianrun
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Xinjiang is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Xinjiang Tianrun Dairy in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinjiang Tianrun Dairy 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 Xinjiang Tianrun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinjiang Tianrun Dairy has no effect on the direction of China Railway i.e., China Railway and Xinjiang Tianrun go up and down completely randomly.
Pair Corralation between China Railway and Xinjiang Tianrun
Assuming the 90 days trading horizon China Railway Group is expected to generate 1.05 times more return on investment than Xinjiang Tianrun. However, China Railway is 1.05 times more volatile than Xinjiang Tianrun Dairy. It trades about 0.03 of its potential returns per unit of risk. Xinjiang Tianrun Dairy is currently generating about -0.03 per unit of risk. If you would invest 545.00 in China Railway Group on September 13, 2024 and sell it today you would earn a total of 112.00 from holding China Railway Group or generate 20.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Xinjiang Tianrun Dairy
Performance |
| Timeline |
| China Railway Group |
| Xinjiang Tianrun Dairy |
China Railway and Xinjiang Tianrun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Xinjiang Tianrun
The main advantage of trading using opposite China Railway and Xinjiang Tianrun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Xinjiang Tianrun 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 Xinjiang Tianrun will offset losses from the drop in Xinjiang Tianrun's long position.| China Railway vs. Hangzhou Weiguang Electronic | China Railway vs. Fuzhou Rockchip Electronics | China Railway vs. YiDong Electronics Technology | China Railway vs. LianChuang Electronic Technology |
| Xinjiang Tianrun vs. Agricultural Bank of | Xinjiang Tianrun vs. Industrial and Commercial | Xinjiang Tianrun vs. Bank of China | Xinjiang Tianrun vs. PetroChina Co Ltd |
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 Portfolio File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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