Correlation Between China Vanke and Guangzhou Jinyi
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By analyzing existing cross correlation between China Vanke Co and Guangzhou Jinyi Media, you can compare the effects of market volatilities on China Vanke and Guangzhou Jinyi 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 Guangzhou Jinyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Guangzhou Jinyi.
Diversification Opportunities for China Vanke and Guangzhou Jinyi
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Guangzhou is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Guangzhou Jinyi Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangzhou Jinyi Media 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 Guangzhou Jinyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangzhou Jinyi Media has no effect on the direction of China Vanke i.e., China Vanke and Guangzhou Jinyi go up and down completely randomly.
Pair Corralation between China Vanke and Guangzhou Jinyi
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Guangzhou Jinyi. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 2.02 times less risky than Guangzhou Jinyi. The stock trades about -0.08 of its potential returns per unit of risk. The Guangzhou Jinyi Media is currently generating about 0.3 of returns per unit of risk over similar time horizon. If you would invest 662.00 in Guangzhou Jinyi Media on September 5, 2024 and sell it today you would earn a total of 184.00 from holding Guangzhou Jinyi Media or generate 27.79% 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. Guangzhou Jinyi Media
Performance |
| Timeline |
| China Vanke |
| Guangzhou Jinyi Media |
China Vanke and Guangzhou Jinyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Guangzhou Jinyi
The main advantage of trading using opposite China Vanke and Guangzhou Jinyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Guangzhou Jinyi 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 Guangzhou Jinyi will offset losses from the drop in Guangzhou Jinyi'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 |
| Guangzhou Jinyi vs. China State Construction | Guangzhou Jinyi vs. Poly Real Estate | Guangzhou Jinyi vs. China Vanke Co | Guangzhou Jinyi 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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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