Correlation Between China Vanke and Guilin Seamild
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By analyzing existing cross correlation between China Vanke Co and Guilin Seamild Foods, you can compare the effects of market volatilities on China Vanke and Guilin Seamild 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 Guilin Seamild. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Guilin Seamild.
Diversification Opportunities for China Vanke and Guilin Seamild
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Guilin is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Guilin Seamild Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guilin Seamild Foods 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 Guilin Seamild. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guilin Seamild Foods has no effect on the direction of China Vanke i.e., China Vanke and Guilin Seamild go up and down completely randomly.
Pair Corralation between China Vanke and Guilin Seamild
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Guilin Seamild. In addition to that, China Vanke is 1.05 times more volatile than Guilin Seamild Foods. It trades about -0.01 of its total potential returns per unit of risk. Guilin Seamild Foods is currently generating about 0.02 per unit of volatility. If you would invest 1,436 in Guilin Seamild Foods on September 4, 2024 and sell it today you would earn a total of 47.00 from holding Guilin Seamild Foods or generate 3.27% 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. Guilin Seamild Foods
Performance |
| Timeline |
| China Vanke |
| Guilin Seamild Foods |
China Vanke and Guilin Seamild Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Guilin Seamild
The main advantage of trading using opposite China Vanke and Guilin Seamild positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Guilin Seamild 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 Guilin Seamild will offset losses from the drop in Guilin Seamild's long position.| China Vanke vs. Jiajia Food Group | China Vanke vs. Ligao Foods CoLtd | China Vanke vs. Qijing Machinery | China Vanke vs. Anji Foodstuff Co |
| Guilin Seamild vs. Poly Real Estate | Guilin Seamild vs. China Vanke Co | Guilin Seamild vs. China Merchants Shekou | Guilin Seamild 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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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