Correlation Between China Vanke and China United
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By analyzing existing cross correlation between China Vanke Co and China United Network, you can compare the effects of market volatilities on China Vanke and China United 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 China United. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and China United.
Diversification Opportunities for China Vanke and China United
0.26 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and China is 0.26. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and China United Network in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China United Network 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 China United. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China United Network has no effect on the direction of China Vanke i.e., China Vanke and China United go up and down completely randomly.
Pair Corralation between China Vanke and China United
Assuming the 90 days trading horizon China Vanke is expected to generate 4.67 times less return on investment than China United. But when comparing it to its historical volatility, China Vanke Co is 1.14 times less risky than China United. It trades about 0.11 of its potential returns per unit of risk. China United Network is currently generating about 0.47 of returns per unit of risk over similar time horizon. If you would invest 489.00 in China United Network on November 28, 2024 and sell it today you would earn a total of 172.00 from holding China United Network or generate 35.17% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 94.12% |
| Values | Daily Returns |
China Vanke Co vs. China United Network
Performance |
| Timeline |
| China Vanke |
| China United Network |
China Vanke and China United Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and China United
The main advantage of trading using opposite China Vanke and China United positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, China United 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 China United will offset losses from the drop in China United's long position.| China Vanke vs. Anhui Gujing Distillery | China Vanke vs. Tonghua Grape Wine | China Vanke vs. Shenzhen Noposion Agrochemicals | China Vanke vs. Gansu Huangtai Wine marketing |
| China United vs. Strait Innovation Internet | China United vs. Runjian Communication Co | China United vs. Jilin Jlu Communication | China United vs. Zijin Mining 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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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