Correlation Between Vanfund Urban and Luolai Home
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By analyzing existing cross correlation between Vanfund Urban Investment and Luolai Home Textile, you can compare the effects of market volatilities on Vanfund Urban and Luolai Home 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 Luolai Home. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Luolai Home.
Diversification Opportunities for Vanfund Urban and Luolai Home
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanfund and Luolai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Luolai Home Textile in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Luolai Home Textile 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 Luolai Home. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Luolai Home Textile has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Luolai Home go up and down completely randomly.
Pair Corralation between Vanfund Urban and Luolai Home
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to generate 2.3 times more return on investment than Luolai Home. However, Vanfund Urban is 2.3 times more volatile than Luolai Home Textile. It trades about 0.01 of its potential returns per unit of risk. Luolai Home Textile is currently generating about 0.0 per unit of risk. If you would invest 647.00 in Vanfund Urban Investment on September 1, 2024 and sell it today you would lose (90.00) from holding Vanfund Urban Investment or give up 13.91% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Luolai Home Textile
Performance |
| Timeline |
| Vanfund Urban Investment |
| Luolai Home Textile |
Vanfund Urban and Luolai Home Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Luolai Home
The main advantage of trading using opposite Vanfund Urban and Luolai Home positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Luolai Home 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 Luolai Home will offset losses from the drop in Luolai Home's long position.| Vanfund Urban vs. Cultural Investment Holdings | Vanfund Urban vs. Gome Telecom Equipment | Vanfund Urban vs. Bus Online Co | Vanfund Urban vs. Holitech Technology Co |
| Luolai Home vs. Chengdu Kanghua Biological | Luolai Home vs. Beijing Wantai Biological | Luolai Home vs. Suzhou Novoprotein Scientific | Luolai Home vs. Aluminum Corp of |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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