Correlation Between China Railway and Shandong Huifa
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Shandong Huifa Foodstuff, you can compare the effects of market volatilities on China Railway and Shandong Huifa 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 Shandong Huifa. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Shandong Huifa.
Diversification Opportunities for China Railway and Shandong Huifa
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shandong is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Shandong Huifa Foodstuff in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shandong Huifa Foodstuff 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 Shandong Huifa. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shandong Huifa Foodstuff has no effect on the direction of China Railway i.e., China Railway and Shandong Huifa go up and down completely randomly.
Pair Corralation between China Railway and Shandong Huifa
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Shandong Huifa. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 2.57 times less risky than Shandong Huifa. The stock trades about -0.02 of its potential returns per unit of risk. The Shandong Huifa Foodstuff is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 1,050 in Shandong Huifa Foodstuff on September 13, 2024 and sell it today you would earn a total of 405.00 from holding Shandong Huifa Foodstuff or generate 38.57% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Shandong Huifa Foodstuff
Performance |
| Timeline |
| China Railway Group |
| Shandong Huifa Foodstuff |
China Railway and Shandong Huifa Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Shandong Huifa
The main advantage of trading using opposite China Railway and Shandong Huifa positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Shandong Huifa 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 Shandong Huifa will offset losses from the drop in Shandong Huifa'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 |
| Shandong Huifa vs. Nanjing Putian Telecommunications | Shandong Huifa vs. Tianjin Realty Development | Shandong Huifa vs. Kangyue Technology Co | Shandong Huifa vs. Shenzhen Hifuture Electric |
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 Global Correlations module to find global opportunities by holding instruments from different markets.
Other Complementary Tools
| ETFs Find actively traded Exchange Traded Funds (ETF) from around the world | |
| 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 | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments |