Correlation Between Vanfund Urban and Guangdong Shenglu
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By analyzing existing cross correlation between Vanfund Urban Investment and Guangdong Shenglu Telecommunication, you can compare the effects of market volatilities on Vanfund Urban and Guangdong Shenglu 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 Shenglu. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Guangdong Shenglu.
Diversification Opportunities for Vanfund Urban and Guangdong Shenglu
0.85 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Guangdong is 0.85. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Guangdong Shenglu Telecommunic in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Guangdong Shenglu 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 Shenglu. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Guangdong Shenglu has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Guangdong Shenglu go up and down completely randomly.
Pair Corralation between Vanfund Urban and Guangdong Shenglu
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to generate 1.14 times more return on investment than Guangdong Shenglu. However, Vanfund Urban is 1.14 times more volatile than Guangdong Shenglu Telecommunication. It trades about -0.03 of its potential returns per unit of risk. Guangdong Shenglu Telecommunication is currently generating about -0.08 per unit of risk. If you would invest 525.00 in Vanfund Urban Investment on October 29, 2024 and sell it today you would lose (50.00) from holding Vanfund Urban Investment or give up 9.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Guangdong Shenglu Telecommunic
Performance |
| Timeline |
| Vanfund Urban Investment |
| Guangdong Shenglu |
Vanfund Urban and Guangdong Shenglu Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Guangdong Shenglu
The main advantage of trading using opposite Vanfund Urban and Guangdong Shenglu positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Guangdong Shenglu 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 Shenglu will offset losses from the drop in Guangdong Shenglu's long position.| Vanfund Urban vs. Industrial and Commercial | Vanfund Urban vs. Kweichow Moutai Co | Vanfund Urban vs. Agricultural Bank of | Vanfund Urban vs. China Mobile Limited |
| Guangdong Shenglu vs. Bus Online Co | Guangdong Shenglu vs. Holitech Technology Co | Guangdong Shenglu vs. Gome Telecom Equipment | Guangdong Shenglu vs. Cultural Investment Holdings |
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 Theme Ratings module to determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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