Correlation Between China Vanke and Shenyang Huitian
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By analyzing existing cross correlation between China Vanke Co and Shenyang Huitian Thermal, you can compare the effects of market volatilities on China Vanke and Shenyang Huitian 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 Shenyang Huitian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Shenyang Huitian.
Diversification Opportunities for China Vanke and Shenyang Huitian
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Shenyang is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Shenyang Huitian Thermal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenyang Huitian Thermal 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 Shenyang Huitian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenyang Huitian Thermal has no effect on the direction of China Vanke i.e., China Vanke and Shenyang Huitian go up and down completely randomly.
Pair Corralation between China Vanke and Shenyang Huitian
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Shenyang Huitian. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.78 times less risky than Shenyang Huitian. The stock trades about -0.13 of its potential returns per unit of risk. The Shenyang Huitian Thermal is currently generating about 0.11 of returns per unit of risk over similar time horizon. If you would invest 344.00 in Shenyang Huitian Thermal on September 2, 2024 and sell it today you would earn a total of 26.00 from holding Shenyang Huitian Thermal or generate 7.56% 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. Shenyang Huitian Thermal
Performance |
| Timeline |
| China Vanke |
| Shenyang Huitian Thermal |
China Vanke and Shenyang Huitian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Shenyang Huitian
The main advantage of trading using opposite China Vanke and Shenyang Huitian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Shenyang Huitian 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 Shenyang Huitian will offset losses from the drop in Shenyang Huitian's long position.| China Vanke vs. BeiGene | China Vanke vs. Kweichow Moutai Co | China Vanke vs. Beijing Roborock Technology | China Vanke vs. G bits Network Technology |
| Shenyang Huitian vs. China State Construction | Shenyang Huitian vs. Poly Real Estate | Shenyang Huitian vs. China Vanke Co | Shenyang Huitian vs. China Merchants Shekou |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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