Correlation Between China Vanke and Henan Shuanghui
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By analyzing existing cross correlation between China Vanke Co and Henan Shuanghui Investment, you can compare the effects of market volatilities on China Vanke and Henan Shuanghui 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 Henan Shuanghui. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Henan Shuanghui.
Diversification Opportunities for China Vanke and Henan Shuanghui
0.93 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Henan is 0.93. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Henan Shuanghui Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Henan Shuanghui Inve 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 Henan Shuanghui. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Henan Shuanghui Inve has no effect on the direction of China Vanke i.e., China Vanke and Henan Shuanghui go up and down completely randomly.
Pair Corralation between China Vanke and Henan Shuanghui
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Henan Shuanghui. In addition to that, China Vanke is 1.6 times more volatile than Henan Shuanghui Investment. It trades about -0.08 of its total potential returns per unit of risk. Henan Shuanghui Investment is currently generating about 0.05 per unit of volatility. If you would invest 2,490 in Henan Shuanghui Investment on September 5, 2024 and sell it today you would earn a total of 32.00 from holding Henan Shuanghui Investment or generate 1.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Henan Shuanghui Investment
Performance |
| Timeline |
| China Vanke |
| Henan Shuanghui Inve |
China Vanke and Henan Shuanghui Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Henan Shuanghui
The main advantage of trading using opposite China Vanke and Henan Shuanghui positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Henan Shuanghui 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 Henan Shuanghui will offset losses from the drop in Henan Shuanghui's long position.| China Vanke vs. Nanjing Putian Telecommunications | China Vanke vs. Tianjin Realty Development | China Vanke vs. Shenyang Huitian Thermal | China Vanke vs. Shenzhen Changfang Light |
| Henan Shuanghui vs. Poly Real Estate | Henan Shuanghui vs. China Vanke Co | Henan Shuanghui vs. China Merchants Shekou | Henan Shuanghui vs. Huafa Industrial 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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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