Correlation Between China Railway and Cinda Securities
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Cinda Securities Co, you can compare the effects of market volatilities on China Railway and Cinda Securities 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 Cinda Securities. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Cinda Securities.
Diversification Opportunities for China Railway and Cinda Securities
0.91 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Cinda is 0.91. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Cinda Securities Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cinda Securities 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 Cinda Securities. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cinda Securities has no effect on the direction of China Railway i.e., China Railway and Cinda Securities go up and down completely randomly.
Pair Corralation between China Railway and Cinda Securities
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.95 times more return on investment than Cinda Securities. However, China Railway Group is 1.05 times less risky than Cinda Securities. It trades about -0.02 of its potential returns per unit of risk. Cinda Securities Co is currently generating about -0.07 per unit of risk. If you would invest 664.00 in China Railway Group on September 13, 2024 and sell it today you would lose (7.00) from holding China Railway Group or give up 1.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Cinda Securities Co
Performance |
| Timeline |
| China Railway Group |
| Cinda Securities |
China Railway and Cinda Securities Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Cinda Securities
The main advantage of trading using opposite China Railway and Cinda Securities positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Cinda Securities 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 Cinda Securities will offset losses from the drop in Cinda Securities' 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 |
| Cinda Securities vs. China Petroleum Chemical | Cinda Securities vs. PetroChina Co Ltd | Cinda Securities vs. China State Construction | Cinda Securities 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
| Instant Ratings Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Analyzer Portfolio analysis module that provides access to portfolio diagnostics and optimization engine | |
| Aroon Oscillator Analyze current equity momentum using Aroon Oscillator and other momentum ratios |