Correlation Between China Railway and JiShi Media
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By analyzing existing cross correlation between China Railway Group and JiShi Media Co, you can compare the effects of market volatilities on China Railway and JiShi Media 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 JiShi Media. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and JiShi Media.
Diversification Opportunities for China Railway and JiShi Media
0.8 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and JiShi is 0.8. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and JiShi Media Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on JiShi Media 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 JiShi Media. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of JiShi Media has no effect on the direction of China Railway i.e., China Railway and JiShi Media go up and down completely randomly.
Pair Corralation between China Railway and JiShi Media
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the JiShi Media. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 1.48 times less risky than JiShi Media. The stock trades about -0.05 of its potential returns per unit of risk. The JiShi Media Co is currently generating about 0.08 of returns per unit of risk over similar time horizon. If you would invest 177.00 in JiShi Media Co on September 3, 2024 and sell it today you would earn a total of 8.00 from holding JiShi Media Co or generate 4.52% 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. JiShi Media Co
Performance |
| Timeline |
| China Railway Group |
| JiShi Media |
China Railway and JiShi Media Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and JiShi Media
The main advantage of trading using opposite China Railway and JiShi Media positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, JiShi Media 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 JiShi Media will offset losses from the drop in JiShi Media's long position.| China Railway vs. Zhongtong Guomai Communication | China Railway vs. Ningbo Homelink Eco iTech | China Railway vs. Wuhan Yangtze Communication | China Railway vs. Railway Signal Communication |
| JiShi Media vs. Gansu Jiu Steel | JiShi Media vs. Ming Yang Smart | JiShi Media vs. Aba Chemicals Corp | JiShi Media vs. Loctek Ergonomic Technology |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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