Correlation Between China Vanke and Zhejiang Tailin
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By analyzing existing cross correlation between China Vanke Co and Zhejiang Tailin Bioengineering, you can compare the effects of market volatilities on China Vanke and Zhejiang Tailin 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 Zhejiang Tailin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Zhejiang Tailin.
Diversification Opportunities for China Vanke and Zhejiang Tailin
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhejiang is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Zhejiang Tailin Bioengineering in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhejiang Tailin Bioe 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 Zhejiang Tailin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhejiang Tailin Bioe has no effect on the direction of China Vanke i.e., China Vanke and Zhejiang Tailin go up and down completely randomly.
Pair Corralation between China Vanke and Zhejiang Tailin
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Zhejiang Tailin. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.49 times less risky than Zhejiang Tailin. The stock trades about -0.07 of its potential returns per unit of risk. The Zhejiang Tailin Bioengineering is currently generating about -0.02 of returns per unit of risk over similar time horizon. If you would invest 3,407 in Zhejiang Tailin Bioengineering on October 16, 2024 and sell it today you would lose (1,739) from holding Zhejiang Tailin Bioengineering or give up 51.04% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Zhejiang Tailin Bioengineering
Performance |
| Timeline |
| China Vanke |
| Zhejiang Tailin Bioe |
China Vanke and Zhejiang Tailin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Zhejiang Tailin
The main advantage of trading using opposite China Vanke and Zhejiang Tailin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Zhejiang Tailin 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 Zhejiang Tailin will offset losses from the drop in Zhejiang Tailin's long position.| China Vanke vs. Wuhan Yangtze Communication | China Vanke vs. Telling Telecommunication Holding | China Vanke vs. Zhongzhu Medical Holdings | China Vanke vs. Bohai Leasing Co |
| Zhejiang Tailin vs. Southern PublishingMedia Co | Zhejiang Tailin vs. Beijing Kaiwen Education | Zhejiang Tailin vs. Heilongjiang Publishing Media | Zhejiang Tailin vs. Beijing Mainstreets Investment |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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