Correlation Between China Vanke and Zhangjiagang Elegant
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By analyzing existing cross correlation between China Vanke Co and Zhangjiagang Elegant Home, you can compare the effects of market volatilities on China Vanke and Zhangjiagang Elegant 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 Zhangjiagang Elegant. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Zhangjiagang Elegant.
Diversification Opportunities for China Vanke and Zhangjiagang Elegant
0.2 | Correlation Coefficient |
Modest diversification
The 3 months correlation between China and Zhangjiagang is 0.2. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Zhangjiagang Elegant Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhangjiagang Elegant Home 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 Zhangjiagang Elegant. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhangjiagang Elegant Home has no effect on the direction of China Vanke i.e., China Vanke and Zhangjiagang Elegant go up and down completely randomly.
Pair Corralation between China Vanke and Zhangjiagang Elegant
Assuming the 90 days trading horizon China Vanke Co is expected to generate 1.04 times more return on investment than Zhangjiagang Elegant. However, China Vanke is 1.04 times more volatile than Zhangjiagang Elegant Home. It trades about 0.03 of its potential returns per unit of risk. Zhangjiagang Elegant Home is currently generating about 0.01 per unit of risk. If you would invest 671.00 in China Vanke Co on October 7, 2024 and sell it today you would earn a total of 29.00 from holding China Vanke Co or generate 4.32% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Zhangjiagang Elegant Home
Performance |
| Timeline |
| China Vanke |
| Zhangjiagang Elegant Home |
China Vanke and Zhangjiagang Elegant Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Zhangjiagang Elegant
The main advantage of trading using opposite China Vanke and Zhangjiagang Elegant positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Zhangjiagang Elegant 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 Zhangjiagang Elegant will offset losses from the drop in Zhangjiagang Elegant's long position.| China Vanke vs. Zhengping RoadBridge Constr | China Vanke vs. Shenzhen Topway Video | China Vanke vs. Luyin Investment Group | China Vanke vs. Dazhong Transportation Group |
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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 Price Exposure Probability module to analyze equity upside and downside potential for a given time horizon across multiple markets.
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