Correlation Between China Vanke and Sichuan Jinshi
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By analyzing existing cross correlation between China Vanke Co and Sichuan Jinshi Technology, you can compare the effects of market volatilities on China Vanke and Sichuan Jinshi 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 Sichuan Jinshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Sichuan Jinshi.
Diversification Opportunities for China Vanke and Sichuan Jinshi
0.6 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Sichuan is 0.6. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Sichuan Jinshi Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Jinshi Technology 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 Sichuan Jinshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Jinshi Technology has no effect on the direction of China Vanke i.e., China Vanke and Sichuan Jinshi go up and down completely randomly.
Pair Corralation between China Vanke and Sichuan Jinshi
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Sichuan Jinshi. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.78 times less risky than Sichuan Jinshi. The stock trades about -0.23 of its potential returns per unit of risk. The Sichuan Jinshi Technology is currently generating about 0.04 of returns per unit of risk over similar time horizon. If you would invest 740.00 in Sichuan Jinshi Technology on September 12, 2024 and sell it today you would earn a total of 13.00 from holding Sichuan Jinshi Technology or generate 1.76% 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. Sichuan Jinshi Technology
Performance |
| Timeline |
| China Vanke |
| Sichuan Jinshi Technology |
China Vanke and Sichuan Jinshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Sichuan Jinshi
The main advantage of trading using opposite China Vanke and Sichuan Jinshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Sichuan Jinshi 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 Sichuan Jinshi will offset losses from the drop in Sichuan Jinshi's long position.| China Vanke vs. Sichuan Jinshi Technology | China Vanke vs. Xinjiang Communications Construction | China Vanke vs. Linewell Software Co | China Vanke vs. Tianjin Hi Tech Development |
| Sichuan Jinshi vs. Zijin Mining Group | Sichuan Jinshi vs. Wanhua Chemical Group | Sichuan Jinshi vs. Baoshan Iron Steel | Sichuan Jinshi vs. Rongsheng Petrochemical 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 Center module to all portfolio management and optimization tools to improve performance of your portfolios.
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