Correlation Between Beijing Shunxin and China Railway
Specify exactly 2 symbols:
By analyzing existing cross correlation between Beijing Shunxin Agriculture and China Railway Construction, you can compare the effects of market volatilities on Beijing Shunxin and China Railway 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 Beijing Shunxin with a short position of China Railway. Check out your portfolio center. Please also check ongoing floating volatility patterns of Beijing Shunxin and China Railway.
Diversification Opportunities for Beijing Shunxin and China Railway
0.92 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Beijing and China is 0.92. Overlapping area represents the amount of risk that can be diversified away by holding Beijing Shunxin Agriculture and China Railway Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Railway Constr and Beijing Shunxin 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 Beijing Shunxin Agriculture are associated (or correlated) with China Railway. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Railway Constr has no effect on the direction of Beijing Shunxin i.e., Beijing Shunxin and China Railway go up and down completely randomly.
Pair Corralation between Beijing Shunxin and China Railway
Assuming the 90 days trading horizon Beijing Shunxin Agriculture is expected to generate 1.22 times more return on investment than China Railway. However, Beijing Shunxin is 1.22 times more volatile than China Railway Construction. It trades about 0.19 of its potential returns per unit of risk. China Railway Construction is currently generating about 0.21 per unit of risk. If you would invest 1,412 in Beijing Shunxin Agriculture on September 15, 2024 and sell it today you would earn a total of 621.00 from holding Beijing Shunxin Agriculture or generate 43.98% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Beijing Shunxin Agriculture vs. China Railway Construction
Performance |
Timeline |
Beijing Shunxin Agri |
China Railway Constr |
Beijing Shunxin and China Railway Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Beijing Shunxin and China Railway
The main advantage of trading using opposite Beijing Shunxin and China Railway positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Beijing Shunxin position performs unexpectedly, China Railway 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 China Railway will offset losses from the drop in China Railway's long position.Beijing Shunxin vs. China Life Insurance | Beijing Shunxin vs. Cinda Securities Co | Beijing Shunxin vs. Piotech Inc A | Beijing Shunxin vs. Dongxing Sec Co |
China Railway vs. North Huajin Chemical | China Railway vs. Maoming Petro Chemical Shihua | China Railway vs. Zhongzhu Medical Holdings | China Railway vs. Miracll Chemicals 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 Portfolio Backtesting module to avoid under-diversification and over-optimization by backtesting your portfolios.
Other Complementary Tools
Piotroski F Score Get Piotroski F Score based on the binary analysis strategy of nine different fundamentals | |
Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
AI Portfolio Architect Use AI to generate optimal portfolios and find profitable investment opportunities |