Correlation Between China Vanke and Shanghai Jin
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By analyzing existing cross correlation between China Vanke Co and Shanghai Jin Jiang, you can compare the effects of market volatilities on China Vanke and Shanghai Jin 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 Shanghai Jin. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Vanke and Shanghai Jin.
Diversification Opportunities for China Vanke and Shanghai Jin
0.82 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and Shanghai is 0.82. Overlapping area represents the amount of risk that can be diversified away by holding China Vanke Co and Shanghai Jin Jiang in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jin Jiang 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 Shanghai Jin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jin Jiang has no effect on the direction of China Vanke i.e., China Vanke and Shanghai Jin go up and down completely randomly.
Pair Corralation between China Vanke and Shanghai Jin
Assuming the 90 days trading horizon China Vanke Co is expected to under-perform the Shanghai Jin. But the stock apears to be less risky and, when comparing its historical volatility, China Vanke Co is 1.77 times less risky than Shanghai Jin. The stock trades about -0.17 of its potential returns per unit of risk. The Shanghai Jin Jiang is currently generating about 0.16 of returns per unit of risk over similar time horizon. If you would invest 61.00 in Shanghai Jin Jiang on August 30, 2024 and sell it today you would earn a total of 7.00 from holding Shanghai Jin Jiang or generate 11.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Vanke Co vs. Shanghai Jin Jiang
Performance |
| Timeline |
| China Vanke |
| Shanghai Jin Jiang |
China Vanke and Shanghai Jin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Vanke and Shanghai Jin
The main advantage of trading using opposite China Vanke and Shanghai Jin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Vanke position performs unexpectedly, Shanghai Jin 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 Shanghai Jin will offset losses from the drop in Shanghai Jin's long position.| China Vanke vs. Industrial and Commercial | China Vanke vs. Agricultural Bank of | China Vanke vs. China Construction Bank | China Vanke vs. Bank of China |
| Shanghai Jin vs. State Grid InformationCommunication | Shanghai Jin vs. Invengo Information Technology | Shanghai Jin vs. China Publishing Media | Shanghai Jin vs. Fujian Longzhou Transportation |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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