Correlation Between China Railway and Changzhou Xingyu
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Changzhou Xingyu Automotive, you can compare the effects of market volatilities on China Railway and Changzhou Xingyu 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 Changzhou Xingyu. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Changzhou Xingyu.
Diversification Opportunities for China Railway and Changzhou Xingyu
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Changzhou is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Changzhou Xingyu Automotive in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changzhou Xingyu Aut 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 Changzhou Xingyu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changzhou Xingyu Aut has no effect on the direction of China Railway i.e., China Railway and Changzhou Xingyu go up and down completely randomly.
Pair Corralation between China Railway and Changzhou Xingyu
Assuming the 90 days trading horizon China Railway Group is expected to generate 0.88 times more return on investment than Changzhou Xingyu. However, China Railway Group is 1.14 times less risky than Changzhou Xingyu. It trades about -0.02 of its potential returns per unit of risk. Changzhou Xingyu Automotive is currently generating about -0.09 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 | Significant |
| Accuracy | 95.65% |
| Values | Daily Returns |
China Railway Group vs. Changzhou Xingyu Automotive
Performance |
| Timeline |
| China Railway Group |
| Changzhou Xingyu Aut |
China Railway and Changzhou Xingyu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Changzhou Xingyu
The main advantage of trading using opposite China Railway and Changzhou Xingyu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Changzhou Xingyu 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 Changzhou Xingyu will offset losses from the drop in Changzhou Xingyu'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 |
| Changzhou Xingyu vs. StarPower Semiconductor | Changzhou Xingyu vs. Ye Chiu Metal | Changzhou Xingyu vs. Union Semiconductor Co | Changzhou Xingyu vs. Juneyao Airlines |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Odds Of Bankruptcy Get analysis of equity chance of financial distress in the next 2 years | |
| Portfolio Rebalancing Analyze risk-adjusted returns against different time horizons to find asset-allocation targets | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences |