Correlation Between China Railway and Xingguang Agricultural
Specify exactly 2 symbols:
By analyzing existing cross correlation between China Railway Construction and Xingguang Agricultural Mach, you can compare the effects of market volatilities on China Railway and Xingguang Agricultural 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 Xingguang Agricultural. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Railway and Xingguang Agricultural.
Diversification Opportunities for China Railway and Xingguang Agricultural
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Xingguang is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Railway Construction and Xingguang Agricultural Mach in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Xingguang Agricultural 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 Xingguang Agricultural. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Xingguang Agricultural has no effect on the direction of China Railway i.e., China Railway and Xingguang Agricultural go up and down completely randomly.
Pair Corralation between China Railway and Xingguang Agricultural
Assuming the 90 days trading horizon China Railway Construction is expected to generate 0.56 times more return on investment than Xingguang Agricultural. However, China Railway Construction is 1.79 times less risky than Xingguang Agricultural. It trades about 0.2 of its potential returns per unit of risk. Xingguang Agricultural Mach is currently generating about 0.05 per unit of risk. If you would invest 439.00 in China Railway Construction on August 27, 2024 and sell it today you would earn a total of 38.00 from holding China Railway Construction or generate 8.66% 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. Xingguang Agricultural Mach
Performance |
| Timeline |
| China Railway Constr |
| Xingguang Agricultural |
China Railway and Xingguang Agricultural Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Railway and Xingguang Agricultural
The main advantage of trading using opposite China Railway and Xingguang Agricultural positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Railway position performs unexpectedly, Xingguang Agricultural 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 Xingguang Agricultural will offset losses from the drop in Xingguang Agricultural'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 |
| Xingguang Agricultural vs. Arrow Home Group | Xingguang Agricultural vs. Weichai Heavy Machinery | Xingguang Agricultural vs. MayAir Technology Co | Xingguang Agricultural vs. Harbin Air Conditioning |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
Other Complementary Tools
| Technical Analysis Check basic technical indicators and analysis based on most latest market data | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Portfolio Optimization Compute new portfolio that will generate highest expected return given your specified tolerance for risk | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal |