Correlation Between China Vanke and Beijing Enlight
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By analyzing existing cross correlation between China Vanke Co and Beijing Enlight Media, you can compare the effects of market volatilities on China Vanke and Beijing Enlight 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 Beijing Enlight. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Beijing Enlight.
Diversification Opportunities for China Vanke and Beijing Enlight
0.07 | Correlation Coefficient |
Significant diversification
The 3 months correlation between China and Beijing is 0.07. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Beijing Enlight Media in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Enlight 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 Beijing Enlight. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Enlight Media has no effect on the direction of China Vanke i.e., China Vanke and Beijing Enlight go up and down completely randomly.
Pair Corralation between China Vanke and Beijing Enlight
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Beijing Enlight. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.29 times less risky than Beijing Enlight. The stock trades about -0.06 of its potential returns per unit of risk. The Beijing Enlight Media is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 785.00 in Beijing Enlight Media on November 5, 2024 and sell it today you would earn a total of 168.00 from holding Beijing Enlight Media or generate 21.4% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Beijing Enlight Media
Performance |
| Timeline |
| China Vanke |
| Beijing Enlight Media |
China Vanke and Beijing Enlight Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Beijing Enlight
The main advantage of trading using opposite China Vanke and Beijing Enlight positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Beijing Enlight 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 Beijing Enlight will offset losses from the drop in Beijing Enlight's long position.| China Vanke vs. Harson Trading China | China Vanke vs. Tieling Newcity Investment | China Vanke vs. Simei Media Co | China Vanke vs. Zhongrun Resources Investment |
| Beijing Enlight vs. Guangdong Jinma Entertainment | Beijing Enlight vs. Hengdian Entertainment Co | Beijing Enlight vs. Duzhe Publishing Media | Beijing Enlight vs. Kontour Medical Technology |
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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