Correlation Between China Citic and China Railway
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By analyzing existing cross correlation between China Citic Bank and China Railway Materials, you can compare the effects of market volatilities on China Citic and China Railway 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 Citic with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Citic and China Railway.
Diversification Opportunities for China Citic and China Railway
0.19 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and China is 0.19. Overlapping area represents the amount of risk that can be diversified away by holding China Citic Bank and China Railway Materials in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Materials and China Citic 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 Citic Bank are associated (or correlated) with China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Materials has no effect on the direction of China Citic i.e., China Citic and China Railway go up and down completely randomly.
Pair Corralation between China Citic and China Railway
Assuming the 90 days trading horizon China Citic Bank is expected to under-perform the China Railway. But the stock apears to be less risky and, when comparing its historical volatility, China Citic Bank is 1.93 times less risky than China Railway. The stock trades about -0.06 of its potential returns per unit of risk. The China Railway Materials is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 252.00 in China Railway Materials on January 12, 2025 and sell it today you would lose (3.00) from holding China Railway Materials or give up 1.19% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Citic Bank vs. China Railway Materials
Performance |
| Timeline |
| China Citic Bank |
| China Railway Materials |
China Citic and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Citic and China Railway
The main advantage of trading using opposite China Citic and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Citic position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.| China Citic vs. FangDa Carbon New | China Citic vs. Shenzhen AV Display Co | China Citic vs. Zotye Automobile Co | China Citic vs. Shandong Kuntai New |
| China Railway vs. Kweichow Moutai Co | China Railway vs. G bits Network Technology | China Railway vs. Beijing Roborock Technology | China Railway vs. China Mobile Limited |
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 CEOs Directory module to screen CEOs from public companies around the world.
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