Correlation Between Chengdu Xingrong and Vanfund Urban
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By analyzing existing cross correlation between Chengdu Xingrong Investment and Vanfund Urban Investment, you can compare the effects of market volatilities on Chengdu Xingrong and Vanfund Urban 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 Chengdu Xingrong with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chengdu Xingrong and Vanfund Urban.
Diversification Opportunities for Chengdu Xingrong and Vanfund Urban
0.41 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Chengdu and Vanfund is 0.41. Overlapping area represents the amount of risk that can be diversified away by holding Chengdu Xingrong Investment and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Chengdu Xingrong 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 Chengdu Xingrong Investment are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Chengdu Xingrong i.e., Chengdu Xingrong and Vanfund Urban go up and down completely randomly.
Pair Corralation between Chengdu Xingrong and Vanfund Urban
Assuming the 90 days trading horizon Chengdu Xingrong Investment is expected to generate 0.34 times more return on investment than Vanfund Urban. However, Chengdu Xingrong Investment is 2.92 times less risky than Vanfund Urban. It trades about 0.29 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about -0.18 per unit of risk. If you would invest 710.00 in Chengdu Xingrong Investment on September 27, 2024 and sell it today you would earn a total of 53.00 from holding Chengdu Xingrong Investment or generate 7.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chengdu Xingrong Investment vs. Vanfund Urban Investment
Performance |
| Timeline |
| Chengdu Xingrong Inv |
| Vanfund Urban Investment |
Chengdu Xingrong and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chengdu Xingrong and Vanfund Urban
The main advantage of trading using opposite Chengdu Xingrong and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chengdu Xingrong position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Chengdu Xingrong vs. Ningbo Construction Co | Chengdu Xingrong vs. Shaanxi Construction Machinery | Chengdu Xingrong vs. Weichai Heavy Machinery | Chengdu Xingrong vs. Gifore Agricultural Machinery |
| Vanfund Urban vs. Chengdu Xingrong Investment | Vanfund Urban vs. Jointo Energy Investment | Vanfund Urban vs. Oppein Home Group | Vanfund Urban vs. Hunan Mendale Hometextile |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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