Correlation Between Vanfund Urban and Guangdong Jingyi
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By analyzing existing cross correlation between Vanfund Urban Investment and Guangdong Jingyi Metal, you can compare the effects of market volatilities on Vanfund Urban and Guangdong Jingyi 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 Guangdong Jingyi. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Guangdong Jingyi.
Diversification Opportunities for Vanfund Urban and Guangdong Jingyi
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanfund and Guangdong is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Guangdong Jingyi Metal in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Jingyi Metal 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 Guangdong Jingyi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Jingyi Metal has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Guangdong Jingyi go up and down completely randomly.
Pair Corralation between Vanfund Urban and Guangdong Jingyi
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 1.37 times less return on investment than Guangdong Jingyi. In addition to that, Vanfund Urban is 1.3 times more volatile than Guangdong Jingyi Metal. It trades about 0.01 of its total potential returns per unit of risk. Guangdong Jingyi Metal is currently generating about 0.03 per unit of volatility. If you would invest 699.00 in Guangdong Jingyi Metal on September 3, 2024 and sell it today you would earn a total of 37.00 from holding Guangdong Jingyi Metal or generate 5.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Guangdong Jingyi Metal
Performance |
| Timeline |
| Vanfund Urban Investment |
| Guangdong Jingyi Metal |
Vanfund Urban and Guangdong Jingyi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Guangdong Jingyi
The main advantage of trading using opposite Vanfund Urban and Guangdong Jingyi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Guangdong Jingyi 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 Guangdong Jingyi will offset losses from the drop in Guangdong Jingyi'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 |
| Guangdong Jingyi vs. Zijin Mining Group | Guangdong Jingyi vs. Baoshan Iron Steel | Guangdong Jingyi vs. Rongsheng Petrochemical Co | Guangdong Jingyi vs. Hoshine Silicon Ind |
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 Stocks Directory module to find actively traded stocks across global markets.
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