Correlation Between Vanfund Urban and Chinese Universe
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By analyzing existing cross correlation between Vanfund Urban Investment and Chinese Universe Publishing, you can compare the effects of market volatilities on Vanfund Urban and Chinese Universe 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 Chinese Universe. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Chinese Universe.
Diversification Opportunities for Vanfund Urban and Chinese Universe
-0.28 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Vanfund and Chinese is -0.28. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Chinese Universe Publishing in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Universe Pub 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 Chinese Universe. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Universe Pub has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Chinese Universe go up and down completely randomly.
Pair Corralation between Vanfund Urban and Chinese Universe
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to generate 1.74 times more return on investment than Chinese Universe. However, Vanfund Urban is 1.74 times more volatile than Chinese Universe Publishing. It trades about 0.19 of its potential returns per unit of risk. Chinese Universe Publishing is currently generating about -0.29 per unit of risk. If you would invest 456.00 in Vanfund Urban Investment on August 25, 2024 and sell it today you would earn a total of 81.00 from holding Vanfund Urban Investment or generate 17.76% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Chinese Universe Publishing
Performance |
| Timeline |
| Vanfund Urban Investment |
| Chinese Universe Pub |
Vanfund Urban and Chinese Universe Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Chinese Universe
The main advantage of trading using opposite Vanfund Urban and Chinese Universe positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Chinese Universe 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 Chinese Universe will offset losses from the drop in Chinese Universe's long position.| Vanfund Urban vs. BYD Co Ltd | Vanfund Urban vs. China Mobile Limited | Vanfund Urban vs. Agricultural Bank of | Vanfund Urban vs. Industrial and Commercial |
| Chinese Universe vs. Sinomach General Machinery | Chinese Universe vs. Vanfund Urban Investment | Chinese Universe vs. Zhejiang Yinlun Machinery | Chinese Universe vs. Shaanxi Construction Machinery |
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 Equity Search module to search for actively traded equities including funds and ETFs from over 30 global markets.
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