Correlation Between Vanfund Urban and Changchun
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By analyzing existing cross correlation between Vanfund Urban Investment and Changchun UP Optotech, you can compare the effects of market volatilities on Vanfund Urban and Changchun 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 Changchun. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Changchun.
Diversification Opportunities for Vanfund Urban and Changchun
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Vanfund and Changchun is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Changchun UP Optotech in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Changchun UP Optotech 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 Changchun. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Changchun UP Optotech has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Changchun go up and down completely randomly.
Pair Corralation between Vanfund Urban and Changchun
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 1.41 times less return on investment than Changchun. But when comparing it to its historical volatility, Vanfund Urban Investment is 1.13 times less risky than Changchun. It trades about 0.12 of its potential returns per unit of risk. Changchun UP Optotech is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 3,484 in Changchun UP Optotech on September 5, 2024 and sell it today you would earn a total of 957.00 from holding Changchun UP Optotech or generate 27.47% 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. Changchun UP Optotech
Performance |
| Timeline |
| Vanfund Urban Investment |
| Changchun UP Optotech |
Vanfund Urban and Changchun Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Changchun
The main advantage of trading using opposite Vanfund Urban and Changchun positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Changchun 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 Changchun will offset losses from the drop in Changchun's long position.| Vanfund Urban vs. China Petroleum Chemical | Vanfund Urban vs. PetroChina Co Ltd | Vanfund Urban vs. China State Construction | Vanfund Urban vs. China Railway Group |
| Changchun vs. Kweichow Moutai Co | Changchun vs. NAURA Technology Group | Changchun vs. APT Medical | Changchun vs. BYD Co Ltd |
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 Aroon Oscillator module to analyze current equity momentum using Aroon Oscillator and other momentum ratios.
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