Correlation Between China Railway and Henan Shuanghui
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By analyzing existing cross correlation between China Railway Construction and Henan Shuanghui Investment, you can compare the effects of market volatilities on China Railway and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Henan Shuanghui.
Diversification Opportunities for China Railway and Henan Shuanghui
-0.06 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and Henan is -0.06. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Construction are associated (or correlated) with Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of China Railway i.e., China Railway and Henan Shuanghui go up and down completely randomly.
Pair Corralation between China Railway and Henan Shuanghui
Assuming the 90 days trading horizon China Railway Construction is expected to under-perform the Henan Shuanghui. In addition to that, China Railway is 1.51 times more volatile than Henan Shuanghui Investment. It trades about -0.28 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about -0.11 per unit of volatility. If you would invest 2,583 in Henan Shuanghui Investment on October 22, 2024 and sell it today you would lose (59.00) from holding Henan Shuanghui Investment or give up 2.28% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Henan Shuanghui Investment
Performance |
| Timeline |
| China Railway Constr |
| Henan Shuanghui Inve |
China Railway and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Henan Shuanghui
The main advantage of trading using opposite China Railway and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| China Railway vs. Guangdong Silvere Sci | China Railway vs. Shenyang Blue Silver | China Railway vs. Jinsanjiang Silicon Material | China Railway vs. Jinhui Mining Co |
| Henan Shuanghui vs. China Sports Industry | Henan Shuanghui vs. Sportsoul Co Ltd | Henan Shuanghui vs. Luolai Home Textile | Henan Shuanghui vs. Fiberhome Telecommunication Technologies |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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