Correlation Between Vanfund Urban and Shanghai Jinfeng
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By analyzing existing cross correlation between Vanfund Urban Investment and Shanghai Jinfeng Wine, you can compare the effects of market volatilities on Vanfund Urban and Shanghai Jinfeng 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 Shanghai Jinfeng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Shanghai Jinfeng.
Diversification Opportunities for Vanfund Urban and Shanghai Jinfeng
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Shanghai is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Shanghai Jinfeng Wine in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Jinfeng Wine 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 Shanghai Jinfeng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Jinfeng Wine has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Shanghai Jinfeng go up and down completely randomly.
Pair Corralation between Vanfund Urban and Shanghai Jinfeng
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to generate 1.34 times more return on investment than Shanghai Jinfeng. However, Vanfund Urban is 1.34 times more volatile than Shanghai Jinfeng Wine. It trades about 0.1 of its potential returns per unit of risk. Shanghai Jinfeng Wine is currently generating about 0.05 per unit of risk. If you would invest 394.00 in Vanfund Urban Investment on August 30, 2024 and sell it today you would earn a total of 162.00 from holding Vanfund Urban Investment or generate 41.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. Shanghai Jinfeng Wine
Performance |
| Timeline |
| Vanfund Urban Investment |
| Shanghai Jinfeng Wine |
Vanfund Urban and Shanghai Jinfeng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Shanghai Jinfeng
The main advantage of trading using opposite Vanfund Urban and Shanghai Jinfeng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Shanghai Jinfeng 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 Shanghai Jinfeng will offset losses from the drop in Shanghai Jinfeng's long position.| Vanfund Urban vs. Chengdu Kanghua Biological | Vanfund Urban vs. Beijing Wantai Biological | Vanfund Urban vs. Suzhou Novoprotein Scientific | Vanfund Urban vs. Aluminum Corp of |
| Shanghai Jinfeng vs. Sportsoul Co Ltd | Shanghai Jinfeng vs. Anhui Jianghuai Automobile | Shanghai Jinfeng vs. State Grid InformationCommunication | Shanghai Jinfeng vs. Tongyu Communication |
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 Instant Ratings module to determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance.
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