Correlation Between China Vanke and Gan Yuan
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By analyzing existing cross correlation between China Vanke Co and Gan Yuan Foods, you can compare the effects of market volatilities on China Vanke and Gan Yuan 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 Gan Yuan. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Gan Yuan.
Diversification Opportunities for China Vanke and Gan Yuan
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Gan is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Gan Yuan Foods in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Gan Yuan 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 Gan Yuan. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Gan Yuan Foods has no effect on the direction of China Vanke i.e., China Vanke and Gan Yuan go up and down completely randomly.
Pair Corralation between China Vanke and Gan Yuan
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Gan Yuan. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.02 times less risky than Gan Yuan. The stock trades about -0.05 of its potential returns per unit of risk. The Gan Yuan Foods is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 6,515 in Gan Yuan Foods on September 12, 2024 and sell it today you would earn a total of 1,318 from holding Gan Yuan Foods or generate 20.23% 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. Gan Yuan Foods
Performance |
| Timeline |
| China Vanke |
| Gan Yuan Foods |
China Vanke and Gan Yuan Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Gan Yuan
The main advantage of trading using opposite China Vanke and Gan Yuan positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Gan Yuan 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 Gan Yuan will offset losses from the drop in Gan Yuan'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 |
| Gan Yuan vs. Maxvision Technology Corp | Gan Yuan vs. Eastroc Beverage Group | Gan Yuan vs. Changchun Faway Automobile | Gan Yuan vs. ROPEOK Technology Group |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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