Correlation Between China Railway and Long Yuan
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Construction and Long Yuan Construction, you can compare the effects of market volatilities on China Railway and Long Yuan 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 Long Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Long Yuan.
Diversification Opportunities for China Railway and Long Yuan
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Long is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Long Yuan Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Long Yuan Construction 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 Long Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Long Yuan Construction has no effect on the direction of China Railway i.e., China Railway and Long Yuan go up and down completely randomly.
Pair Corralation between China Railway and Long Yuan
Assuming the 90 days trading horizon China Railway is expected to generate 1.92 times less return on investment than Long Yuan. But when comparing it to its historical volatility, China Railway Construction is 1.53 times less risky than Long Yuan. It trades about 0.1 of its potential returns per unit of risk. Long Yuan Construction is currently generating about 0.12 of returns per unit of risk over similar time horizon. If you would invest 250.00 in Long Yuan Construction on September 1, 2024 and sell it today you would earn a total of 133.00 from holding Long Yuan Construction or generate 53.2% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 99.19% |
| Values | Daily Returns |
China Railway Construction vs. Long Yuan Construction
Performance |
| Timeline |
| China Railway Constr |
| Long Yuan Construction |
China Railway and Long Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Long Yuan
The main advantage of trading using opposite China Railway and Long Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Long Yuan 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 Long Yuan will offset losses from the drop in Long Yuan's long position.| China Railway vs. Longjian Road Bridge | China Railway vs. Tibet Huayu Mining | China Railway vs. Heilongjiang Transport Development | China Railway vs. Yunnan Xiyi Industrial |
| Long Yuan vs. Hua Xia Bank | Long Yuan vs. Allwin Telecommunication Co | Long Yuan vs. Agricultural Bank of | Long Yuan vs. Sunwave Communications Co |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
Other Complementary Tools
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Idea Analyzer Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas | |
| Commodity Channel Use Commodity Channel Index to analyze current equity momentum | |
| Options Analysis Analyze and evaluate options and option chains as a potential hedge for your portfolios | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |