Correlation Between Hefei Metalforming and China Railway
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By analyzing existing cross correlation between Hefei Metalforming Mach and China Railway Construction, you can compare the effects of market volatilities on Hefei Metalforming 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 Hefei Metalforming with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Hefei Metalforming and China Railway.
Diversification Opportunities for Hefei Metalforming and China Railway
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Hefei and China is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding Hefei Metalforming Mach and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr and Hefei Metalforming 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 Hefei Metalforming Mach 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 Constr has no effect on the direction of Hefei Metalforming i.e., Hefei Metalforming and China Railway go up and down completely randomly.
Pair Corralation between Hefei Metalforming and China Railway
Assuming the 90 days trading horizon Hefei Metalforming Mach is expected to under-perform the China Railway. In addition to that, Hefei Metalforming is 1.68 times more volatile than China Railway Construction. It trades about -0.01 of its total potential returns per unit of risk. China Railway Construction is currently generating about 0.03 per unit of volatility. If you would invest 379.00 in China Railway Construction on October 25, 2024 and sell it today you would earn a total of 27.00 from holding China Railway Construction or generate 7.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.5% |
| Values | Daily Returns |
Hefei Metalforming Mach vs. China Railway Construction
Performance |
| Timeline |
| Hefei Metalforming Mach |
| China Railway Constr |
Hefei Metalforming and China Railway Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Hefei Metalforming and China Railway
The main advantage of trading using opposite Hefei Metalforming and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Hefei Metalforming 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.| Hefei Metalforming vs. Jilin Jlu Communication | Hefei Metalforming vs. CICT Mobile Communication | Hefei Metalforming vs. Guangzhou Jointas Chemical | Hefei Metalforming vs. Telling Telecommunication Holding |
| China Railway vs. Omnijoi Media Corp | China Railway vs. Shuhua Sports Co | China Railway vs. Hangzhou Guotai Environmental | China Railway vs. Elite Color Environmental |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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