Correlation Between China Railway and Bank of Qingdao
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By analyzing existing cross correlation between China Railway Construction and Bank of Qingdao, you can compare the effects of market volatilities on China Railway and Bank of Qingdao 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 Bank of Qingdao. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Bank of Qingdao.
Diversification Opportunities for China Railway and Bank of Qingdao
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Bank is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Bank of Qingdao in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Bank of Qingdao 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 Bank of Qingdao. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Bank of Qingdao has no effect on the direction of China Railway i.e., China Railway and Bank of Qingdao go up and down completely randomly.
Pair Corralation between China Railway and Bank of Qingdao
Assuming the 90 days trading horizon China Railway Construction is expected to under-perform the Bank of Qingdao. In addition to that, China Railway is 1.01 times more volatile than Bank of Qingdao. It trades about -0.07 of its total potential returns per unit of risk. Bank of Qingdao is currently generating about 0.09 per unit of volatility. If you would invest 372.00 in Bank of Qingdao on September 13, 2024 and sell it today you would earn a total of 9.00 from holding Bank of Qingdao or generate 2.42% 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. Bank of Qingdao
Performance |
| Timeline |
| China Railway Constr |
| Bank of Qingdao |
China Railway and Bank of Qingdao Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Bank of Qingdao
The main advantage of trading using opposite China Railway and Bank of Qingdao positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Bank of Qingdao 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 Bank of Qingdao will offset losses from the drop in Bank of Qingdao's long position.| China Railway vs. Industrial and Commercial | China Railway vs. Kweichow Moutai Co | China Railway vs. Agricultural Bank of | China Railway vs. China Mobile Limited |
| Bank of Qingdao vs. Fujian Longzhou Transportation | Bank of Qingdao vs. Ningbo Tip Rubber | Bank of Qingdao vs. Sinomach Automobile Co | Bank of Qingdao vs. Heilongjiang Transport Development |
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 Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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