Correlation Between Vanfund Urban and Shenzhen Longsys
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By analyzing existing cross correlation between Vanfund Urban Investment and Shenzhen Longsys Electronics, you can compare the effects of market volatilities on Vanfund Urban and Shenzhen Longsys 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 Shenzhen Longsys. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Shenzhen Longsys.
Diversification Opportunities for Vanfund Urban and Shenzhen Longsys
0.72 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanfund and Shenzhen is 0.72. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Shenzhen Longsys Electronics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shenzhen Longsys Ele 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 Shenzhen Longsys. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shenzhen Longsys Ele has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Shenzhen Longsys go up and down completely randomly.
Pair Corralation between Vanfund Urban and Shenzhen Longsys
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 27.92 times less return on investment than Shenzhen Longsys. But when comparing it to its historical volatility, Vanfund Urban Investment is 1.11 times less risky than Shenzhen Longsys. It trades about 0.0 of its potential returns per unit of risk. Shenzhen Longsys Electronics is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 7,539 in Shenzhen Longsys Electronics on September 5, 2024 and sell it today you would earn a total of 1,323 from holding Shenzhen Longsys Electronics or generate 17.55% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 99.79% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Shenzhen Longsys Electronics
Performance |
| Timeline |
| Vanfund Urban Investment |
| Shenzhen Longsys Ele |
Vanfund Urban and Shenzhen Longsys Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Shenzhen Longsys
The main advantage of trading using opposite Vanfund Urban and Shenzhen Longsys positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Shenzhen Longsys 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 Shenzhen Longsys will offset losses from the drop in Shenzhen Longsys' 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 |
| Shenzhen Longsys vs. Nuode Investment Co | Shenzhen Longsys vs. Vanfund Urban Investment | Shenzhen Longsys vs. Integrated Electronic Systems | Shenzhen Longsys vs. Zhongrun Resources Investment |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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