Correlation Between Agile Group and China Vanke

Can any of the company-specific risk be diversified away by investing in both Agile Group and China Vanke at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Agile Group and China Vanke into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Agile Group Holdings and China Vanke Co, you can compare the effects of market volatilities on Agile Group and China Vanke 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 Agile Group with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Agile Group and China Vanke.

Diversification Opportunities for Agile Group and China Vanke

0.53

Correlation Coefficient

Agile Group  China Vanke

Very weak diversification

The 3 months correlation between Agile and China is 0.53. Overlapping area represents the amount of risk that can be diversified away by holding Agile Group Holdings and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Agile Group 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 Agile Group Holdings are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Agile Group i.e., Agile Group and China Vanke go up and down completely randomly.

Pair Corralation between Agile Group and China Vanke

If you would invest  490.00  in Agile Group Holdings on October 12, 2024 and sell it today you would earn a total of  0.00  from holding Agile Group Holdings or generate 0.0% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Together
Strength	Weak
Accuracy	100.0%
Values	Daily Returns

Agile Group Holdings  vs.  China Vanke Co

Agile Group Holdings

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days Agile Group Holdings has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's basic indicators remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

China Vanke

Risk-Adjusted Performance

0 of 100

Very Weak

Over the last 90 days China Vanke Co has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of fragile performance in the last few months, the Stock's forward-looking signals remain fairly strong which may send shares a bit higher in February 2025. The current disturbance may also be a sign of long term up-swing for the company investors.

Pair Trading with Agile Group and China Vanke

The main advantage of trading using opposite Agile Group and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Agile Group position performs unexpectedly, China Vanke 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 Vanke will offset losses from the drop in China Vanke's long position.

The idea behind Agile Group Holdings and China Vanke Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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 Commodity Channel module to use Commodity Channel Index to analyze current equity momentum.