Correlation Between China Vanke and Suzhou Weizhixiang
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By analyzing existing cross correlation between China Vanke Co and Suzhou Weizhixiang Food, you can compare the effects of market volatilities on China Vanke and Suzhou Weizhixiang 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 Suzhou Weizhixiang. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Suzhou Weizhixiang.
Diversification Opportunities for China Vanke and Suzhou Weizhixiang
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Suzhou is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Suzhou Weizhixiang Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Suzhou Weizhixiang Food 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 Suzhou Weizhixiang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Suzhou Weizhixiang Food has no effect on the direction of China Vanke i.e., China Vanke and Suzhou Weizhixiang go up and down completely randomly.
Pair Corralation between China Vanke and Suzhou Weizhixiang
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Suzhou Weizhixiang. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 2.1 times less risky than Suzhou Weizhixiang. The stock trades about -0.08 of its potential returns per unit of risk. The Suzhou Weizhixiang Food is currently generating about 0.26 of returns per unit of risk over similar time horizon. If you would invest 2,110 in Suzhou Weizhixiang Food on September 5, 2024 and sell it today you would earn a total of 508.00 from holding Suzhou Weizhixiang Food or generate 24.08% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Suzhou Weizhixiang Food
Performance |
| Timeline |
| China Vanke |
| Suzhou Weizhixiang Food |
China Vanke and Suzhou Weizhixiang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Suzhou Weizhixiang
The main advantage of trading using opposite China Vanke and Suzhou Weizhixiang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Suzhou Weizhixiang 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 Suzhou Weizhixiang will offset losses from the drop in Suzhou Weizhixiang's long position.| China Vanke vs. Nanjing Putian Telecommunications | China Vanke vs. Tianjin Realty Development | China Vanke vs. Shenyang Huitian Thermal | China Vanke vs. Shenzhen Changfang Light |
| Suzhou Weizhixiang vs. Poly Real Estate | Suzhou Weizhixiang vs. China Vanke Co | Suzhou Weizhixiang vs. China Merchants Shekou | Suzhou Weizhixiang vs. Huafa Industrial Co |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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