Correlation Between China Vanke and Cultural Investment
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By analyzing existing cross correlation between China Vanke Co and Cultural Investment Holdings, you can compare the effects of market volatilities on China Vanke and Cultural Investment 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 Cultural Investment. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Cultural Investment.
Diversification Opportunities for China Vanke and Cultural Investment
0.46 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between China and Cultural is 0.46. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Cultural Investment Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Cultural Investment 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 Cultural Investment. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Cultural Investment has no effect on the direction of China Vanke i.e., China Vanke and Cultural Investment go up and down completely randomly.
Pair Corralation between China Vanke and Cultural Investment
Assuming the 90 days trading horizon China Vanke Co is expected to generate 0.65 times more return on investment than Cultural Investment. However, China Vanke Co is 1.54 times less risky than Cultural Investment. It trades about -0.02 of its potential returns per unit of risk. Cultural Investment Holdings is currently generating about -0.01 per unit of risk. If you would invest 1,054 in China Vanke Co on September 12, 2024 and sell it today you would lose (196.00) from holding China Vanke Co or give up 18.6% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Cultural Investment Holdings
Performance |
| Timeline |
| China Vanke |
| Cultural Investment |
China Vanke and Cultural Investment Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Cultural Investment
The main advantage of trading using opposite China Vanke and Cultural Investment positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Cultural Investment 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 Cultural Investment will offset losses from the drop in Cultural Investment'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 |
| Cultural Investment vs. Kweichow Moutai Co | Cultural Investment vs. Shenzhen Mindray Bio Medical | Cultural Investment vs. G bits Network Technology | Cultural Investment vs. Beijing Roborock 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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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