Correlation Between China Railway and Emdoor Information
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By analyzing existing cross correlation between China Railway Construction and Emdoor Information Co, you can compare the effects of market volatilities on China Railway and Emdoor Information 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 Emdoor Information. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Emdoor Information.
Diversification Opportunities for China Railway and Emdoor Information
0.94 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Emdoor is 0.94. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Emdoor Information Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Emdoor Information 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 Emdoor Information. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Emdoor Information has no effect on the direction of China Railway i.e., China Railway and Emdoor Information go up and down completely randomly.
Pair Corralation between China Railway and Emdoor Information
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.99 times more return on investment than Emdoor Information. However, China Railway Construction is 1.01 times less risky than Emdoor Information. It trades about 0.21 of its potential returns per unit of risk. Emdoor Information Co is currently generating about 0.19 per unit of risk. If you would invest 369.00 in China Railway Construction on August 27, 2024 and sell it today you would earn a total of 108.00 from holding China Railway Construction or generate 29.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Railway Construction vs. Emdoor Information Co
Performance |
| Timeline |
| China Railway Constr |
| Emdoor Information |
China Railway and Emdoor Information Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Emdoor Information
The main advantage of trading using opposite China Railway and Emdoor Information positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Emdoor Information 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 Emdoor Information will offset losses from the drop in Emdoor Information's long position.| China Railway vs. Biwin Storage Technology | China Railway vs. PetroChina Co Ltd | China Railway vs. Industrial and Commercial | China Railway vs. China Construction Bank |
| Emdoor Information vs. Vanfund Urban Investment | Emdoor Information vs. Harbin Hatou Investment | Emdoor Information vs. Zhongrun Resources Investment | Emdoor Information vs. Beijing Mainstreets Investment |
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 Pair Correlation module to compare performance and examine fundamental relationship between any two equity instruments.
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