Correlation Between China Vanke and Zhangjiagang Elegant
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By analyzing existing cross correlation between China Vanke Co and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on China Vanke and Zhangjiagang Elegant 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 Vanke with a short position of Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Zhangjiagang Elegant.
Diversification Opportunities for China Vanke and Zhangjiagang Elegant
0.73 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhangjiagang is 0.73. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home and China Vanke 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 Vanke Co are associated (or correlated) with Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of China Vanke i.e., China Vanke and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between China Vanke and Zhangjiagang Elegant
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Zhangjiagang Elegant. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.67 times less risky than Zhangjiagang Elegant. The stock trades about -0.1 of its potential returns per unit of risk. The Zhangjiagang Elegant Home is currently generating about 0.32 of returns per unit of risk over similar time horizon. If you would invest 941.00 in Zhangjiagang Elegant Home on September 16, 2024 and sell it today you would earn a total of 181.00 from holding Zhangjiagang Elegant Home or generate 19.23% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Significant |
Accuracy | 100.0% |
Values | Daily Returns |
China Vanke Co vs. Zhangjiagang Elegant Home
Performance |
Timeline |
China Vanke |
Zhangjiagang Elegant Home |
China Vanke and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Vanke and Zhangjiagang Elegant
The main advantage of trading using opposite China Vanke and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.China Vanke vs. Allwin Telecommunication Co | China Vanke vs. Iat Automobile Technology | China Vanke vs. Hang Xiao Steel | China Vanke vs. Tongxing Environmental Protection |
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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 File Import module to quickly import all of your third-party portfolios from your local drive in csv format.
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