Correlation Between China Vanke and Zhongtong Guomai
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By analyzing existing cross correlation between China Vanke Co and Zhongtong Guomai Communication, you can compare the effects of market volatilities on China Vanke and Zhongtong Guomai 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 Zhongtong Guomai. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Zhongtong Guomai.
Diversification Opportunities for China Vanke and Zhongtong Guomai
0.76 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Zhongtong is 0.76. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Zhongtong Guomai Communication in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Zhongtong Guomai Com 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 Zhongtong Guomai. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Zhongtong Guomai Com has no effect on the direction of China Vanke i.e., China Vanke and Zhongtong Guomai go up and down completely randomly.
Pair Corralation between China Vanke and Zhongtong Guomai
Assuming the 90 days trading horizon China Vanke Co is expected to generate 0.78 times more return on investment than Zhongtong Guomai. However, China Vanke Co is 1.28 times less risky than Zhongtong Guomai. It trades about -0.02 of its potential returns per unit of risk. Zhongtong Guomai Communication is currently generating about -0.19 per unit of risk. If you would invest 755.00 in China Vanke Co on October 28, 2024 and sell it today you would lose (16.00) from holding China Vanke Co or give up 2.12% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Zhongtong Guomai Communication
Performance |
| Timeline |
| China Vanke |
| Zhongtong Guomai Com |
China Vanke and Zhongtong Guomai Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Zhongtong Guomai
The main advantage of trading using opposite China Vanke and Zhongtong Guomai positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Zhongtong Guomai 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 Zhongtong Guomai will offset losses from the drop in Zhongtong Guomai's long position.| China Vanke vs. Tsingtao Brewery Co | China Vanke vs. Will Semiconductor Co | China Vanke vs. Xiwang Foodstuffs Co | China Vanke vs. Puya Semiconductor Shanghai |
| Zhongtong Guomai vs. Shanghai V Test Semiconductor | Zhongtong Guomai vs. StarPower Semiconductor | Zhongtong Guomai vs. Suzhou Oriental Semiconductor | Zhongtong Guomai vs. Thinkon Semiconductor Jinzhou |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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