Correlation Between China Railway and Hangzhou Huawang
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Group and Hangzhou Huawang New, you can compare the effects of market volatilities on China Railway and Hangzhou Huawang 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 Hangzhou Huawang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Hangzhou Huawang.
Diversification Opportunities for China Railway and Hangzhou Huawang
0.83 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Hangzhou is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Group and Hangzhou Huawang New in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Hangzhou Huawang New 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 Hangzhou Huawang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Hangzhou Huawang New has no effect on the direction of China Railway i.e., China Railway and Hangzhou Huawang go up and down completely randomly.
Pair Corralation between China Railway and Hangzhou Huawang
Assuming the 90 days trading horizon China Railway is expected to generate 7.77 times less return on investment than Hangzhou Huawang. In addition to that, China Railway is 1.22 times more volatile than Hangzhou Huawang New. It trades about 0.01 of its total potential returns per unit of risk. Hangzhou Huawang New is currently generating about 0.1 per unit of volatility. If you would invest 1,222 in Hangzhou Huawang New on September 1, 2024 and sell it today you would earn a total of 42.00 from holding Hangzhou Huawang New or generate 3.44% 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. Hangzhou Huawang New
Performance |
| Timeline |
| China Railway Group |
| Hangzhou Huawang New |
China Railway and Hangzhou Huawang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Hangzhou Huawang
The main advantage of trading using opposite China Railway and Hangzhou Huawang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Hangzhou Huawang 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 Hangzhou Huawang will offset losses from the drop in Hangzhou Huawang's long position.| China Railway vs. Shanghai Jinfeng Wine | China Railway vs. Changchun Engley Automobile | China Railway vs. Haima Automobile Group | China Railway vs. Xinjiang Communications Construction |
| Hangzhou Huawang vs. Zijin Mining Group | Hangzhou Huawang vs. Wanhua Chemical Group | Hangzhou Huawang vs. Baoshan Iron Steel | Hangzhou Huawang vs. Shandong Gold Mining |
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 Portfolio Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
Other Complementary Tools
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges |