Correlation Between Vanfund Urban and Jilin Chemical
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By analyzing existing cross correlation between Vanfund Urban Investment and Jilin Chemical Fibre, you can compare the effects of market volatilities on Vanfund Urban and Jilin Chemical 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 Vanfund Urban with a short position of Jilin Chemical. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Jilin Chemical.
Diversification Opportunities for Vanfund Urban and Jilin Chemical
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Jilin is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Jilin Chemical Fibre in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Jilin Chemical Fibre and Vanfund Urban 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 Vanfund Urban Investment are associated (or correlated) with Jilin Chemical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Jilin Chemical Fibre has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Jilin Chemical go up and down completely randomly.
Pair Corralation between Vanfund Urban and Jilin Chemical
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to under-perform the Jilin Chemical. In addition to that, Vanfund Urban is 1.21 times more volatile than Jilin Chemical Fibre. It trades about -0.01 of its total potential returns per unit of risk. Jilin Chemical Fibre is currently generating about 0.04 per unit of volatility. If you would invest 279.00 in Jilin Chemical Fibre on October 20, 2024 and sell it today you would earn a total of 70.00 from holding Jilin Chemical Fibre or generate 25.09% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Jilin Chemical Fibre
Performance |
| Timeline |
| Vanfund Urban Investment |
| Jilin Chemical Fibre |
Vanfund Urban and Jilin Chemical Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Jilin Chemical
The main advantage of trading using opposite Vanfund Urban and Jilin Chemical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Jilin Chemical 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 Jilin Chemical will offset losses from the drop in Jilin Chemical's long position.| Vanfund Urban vs. Thunder Software Technology | Vanfund Urban vs. Zhonghong Pulin Medical | Vanfund Urban vs. Dhc Software Co | Vanfund Urban vs. Nanjing Vishee Medical |
| Jilin Chemical vs. China Publishing Media | Jilin Chemical vs. Runjian Communication Co | Jilin Chemical vs. China Satellite Communications | Jilin Chemical vs. Time Publishing and |
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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