Correlation Between China Railway and Xinya Electronic
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By analyzing existing cross correlation between China Railway Group and Xinya Electronic Co, you can compare the effects of market volatilities on China Railway and Xinya Electronic 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 Xinya Electronic. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Xinya Electronic.
Diversification Opportunities for China Railway and Xinya Electronic
-0.22 | Correlation Coefficient |
Very good diversification
The 3 months correlation between China and Xinya is -0.22. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Xinya Electronic Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xinya Electronic 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 Xinya Electronic. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xinya Electronic has no effect on the direction of China Railway i.e., China Railway and Xinya Electronic go up and down completely randomly.
Pair Corralation between China Railway and Xinya Electronic
Assuming the 90 days trading horizon China Railway Group is expected to under-perform the Xinya Electronic. But the stock apears to be less risky and, when comparing its historical volatility, China Railway Group is 3.14 times less risky than Xinya Electronic. The stock trades about -0.34 of its potential returns per unit of risk. The Xinya Electronic Co is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 1,517 in Xinya Electronic Co on October 12, 2024 and sell it today you would lose (53.00) from holding Xinya Electronic Co or give up 3.49% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Group vs. Xinya Electronic Co
Performance |
| Timeline |
| China Railway Group |
| Xinya Electronic |
China Railway and Xinya Electronic Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Xinya Electronic
The main advantage of trading using opposite China Railway and Xinya Electronic positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Xinya Electronic 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 Xinya Electronic will offset losses from the drop in Xinya Electronic's long position.| China Railway vs. Goodwill E Health | China Railway vs. Kunwu Jiuding Investment | China Railway vs. Shenzhen Centralcon Investment | China Railway vs. Jiangsu Yueda Investment |
| Xinya Electronic vs. China Petroleum Chemical | Xinya Electronic vs. PetroChina Co Ltd | Xinya Electronic vs. China State Construction | Xinya Electronic 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 Competition Analyzer module to analyze and compare many basic indicators for a group of related or unrelated entities.
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