Correlation Between China Vanke and Guangxi Wuzhou
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By analyzing existing cross correlation between China Vanke Co and Guangxi Wuzhou Communications, you can compare the effects of market volatilities on China Vanke and Guangxi Wuzhou 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 Guangxi Wuzhou. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Guangxi Wuzhou.
Diversification Opportunities for China Vanke and Guangxi Wuzhou
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Guangxi is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Guangxi Wuzhou Communications in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangxi Wuzhou Commu 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 Guangxi Wuzhou. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangxi Wuzhou Commu has no effect on the direction of China Vanke i.e., China Vanke and Guangxi Wuzhou go up and down completely randomly.
Pair Corralation between China Vanke and Guangxi Wuzhou
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Guangxi Wuzhou. In addition to that, China Vanke is 1.18 times more volatile than Guangxi Wuzhou Communications. It trades about -0.05 of its total potential returns per unit of risk. Guangxi Wuzhou Communications is currently generating about 0.03 per unit of volatility. If you would invest 329.00 in Guangxi Wuzhou Communications on September 12, 2024 and sell it today you would earn a total of 71.00 from holding Guangxi Wuzhou Communications or generate 21.58% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Guangxi Wuzhou Communications
Performance |
| Timeline |
| China Vanke |
| Guangxi Wuzhou Commu |
China Vanke and Guangxi Wuzhou Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Guangxi Wuzhou
The main advantage of trading using opposite China Vanke and Guangxi Wuzhou positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Guangxi Wuzhou 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 Guangxi Wuzhou will offset losses from the drop in Guangxi Wuzhou'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 |
| Guangxi Wuzhou vs. Agricultural Bank of | Guangxi Wuzhou vs. Industrial and Commercial | Guangxi Wuzhou vs. Bank of China | Guangxi Wuzhou vs. PetroChina Co Ltd |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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