Correlation Between Sichuan Yahua and Vanfund Urban
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By analyzing existing cross correlation between Sichuan Yahua Industrial and Vanfund Urban Investment, you can compare the effects of market volatilities on Sichuan Yahua and Vanfund Urban 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 Sichuan Yahua with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and Vanfund Urban.
Diversification Opportunities for Sichuan Yahua and Vanfund Urban
0.88 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Sichuan and Vanfund is 0.88. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and Vanfund Urban go up and down completely randomly.
Pair Corralation between Sichuan Yahua and Vanfund Urban
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.1 times more return on investment than Vanfund Urban. However, Sichuan Yahua is 1.1 times more volatile than Vanfund Urban Investment. It trades about 0.08 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.08 per unit of risk. If you would invest 1,214 in Sichuan Yahua Industrial on September 23, 2024 and sell it today you would earn a total of 50.00 from holding Sichuan Yahua Industrial or generate 4.12% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Sichuan Yahua Industrial vs. Vanfund Urban Investment
Performance |
Timeline |
Sichuan Yahua Industrial |
Vanfund Urban Investment |
Sichuan Yahua and Vanfund Urban Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Sichuan Yahua and Vanfund Urban
The main advantage of trading using opposite Sichuan Yahua and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.Sichuan Yahua vs. New Hope Dairy | Sichuan Yahua vs. Advanced Technology Materials | Sichuan Yahua vs. Wankai New Materials | Sichuan Yahua vs. Cangzhou Mingzhu Plastic |
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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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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