Correlation Between China Vanke and Ningbo Jintian
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By analyzing existing cross correlation between China Vanke Co and Ningbo Jintian Copper, you can compare the effects of market volatilities on China Vanke and Ningbo Jintian 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 Ningbo Jintian. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Ningbo Jintian.
Diversification Opportunities for China Vanke and Ningbo Jintian
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Ningbo is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Ningbo Jintian Copper in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ningbo Jintian Copper 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 Ningbo Jintian. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ningbo Jintian Copper has no effect on the direction of China Vanke i.e., China Vanke and Ningbo Jintian go up and down completely randomly.
Pair Corralation between China Vanke and Ningbo Jintian
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Ningbo Jintian. In addition to that, China Vanke is 1.31 times more volatile than Ningbo Jintian Copper. It trades about -0.04 of its total potential returns per unit of risk. Ningbo Jintian Copper is currently generating about -0.01 per unit of volatility. If you would invest 674.00 in Ningbo Jintian Copper on September 4, 2024 and sell it today you would lose (68.00) from holding Ningbo Jintian Copper or give up 10.09% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Ningbo Jintian Copper
Performance |
| Timeline |
| China Vanke |
| Ningbo Jintian Copper |
China Vanke and Ningbo Jintian Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Ningbo Jintian
The main advantage of trading using opposite China Vanke and Ningbo Jintian positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Ningbo Jintian 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 Ningbo Jintian will offset losses from the drop in Ningbo Jintian's long position.| China Vanke vs. Jiajia Food Group | China Vanke vs. Ligao Foods CoLtd | China Vanke vs. Qijing Machinery | China Vanke vs. Anji Foodstuff Co |
| Ningbo Jintian vs. Everjoy Health Group | Ningbo Jintian vs. Saurer Intelligent Technology | Ningbo Jintian vs. Jiujiang Shanshui Technology | Ningbo Jintian vs. Tianshui Huatian 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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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