Correlation Between Vanfund Urban and Shanghai Material
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By analyzing existing cross correlation between Vanfund Urban Investment and Shanghai Material Trading, you can compare the effects of market volatilities on Vanfund Urban and Shanghai Material 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 Material. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Shanghai Material.
Diversification Opportunities for Vanfund Urban and Shanghai Material
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Shanghai is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Shanghai Material Trading in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Material Trading 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 Material. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Material Trading has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Shanghai Material go up and down completely randomly.
Pair Corralation between Vanfund Urban and Shanghai Material
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 83.97 times less return on investment than Shanghai Material. But when comparing it to its historical volatility, Vanfund Urban Investment is 1.6 times less risky than Shanghai Material. It trades about 0.0 of its potential returns per unit of risk. Shanghai Material Trading is currently generating about 0.23 of returns per unit of risk over similar time horizon. If you would invest 980.00 in Shanghai Material Trading on September 1, 2024 and sell it today you would earn a total of 253.00 from holding Shanghai Material Trading or generate 25.82% 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 Material Trading
Performance |
| Timeline |
| Vanfund Urban Investment |
| Shanghai Material Trading |
Vanfund Urban and Shanghai Material Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Shanghai Material
The main advantage of trading using opposite Vanfund Urban and Shanghai Material positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Shanghai Material 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 Material will offset losses from the drop in Shanghai Material's long position.| Vanfund Urban vs. Cultural Investment Holdings | Vanfund Urban vs. Gome Telecom Equipment | Vanfund Urban vs. Bus Online Co | Vanfund Urban vs. Holitech Technology Co |
| Shanghai Material vs. Ming Yang Smart | Shanghai Material vs. 159681 | Shanghai Material vs. 159005 | Shanghai Material vs. Loctek Ergonomic Technology |
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 Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.
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