Correlation Between Vanfund Urban and China Galaxy
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By analyzing existing cross correlation between Vanfund Urban Investment and China Galaxy Securities, you can compare the effects of market volatilities on Vanfund Urban and China Galaxy 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 China Galaxy. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and China Galaxy.
Diversification Opportunities for Vanfund Urban and China Galaxy
0.69 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanfund and China is 0.69. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and China Galaxy Securities in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Galaxy Securities 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 China Galaxy. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Galaxy Securities has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and China Galaxy go up and down completely randomly.
Pair Corralation between Vanfund Urban and China Galaxy
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 1.1 times less return on investment than China Galaxy. In addition to that, Vanfund Urban is 1.07 times more volatile than China Galaxy Securities. It trades about 0.1 of its total potential returns per unit of risk. China Galaxy Securities is currently generating about 0.11 per unit of volatility. If you would invest 1,092 in China Galaxy Securities on September 30, 2024 and sell it today you would earn a total of 486.00 from holding China Galaxy Securities or generate 44.51% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Vanfund Urban Investment vs. China Galaxy Securities
Performance |
| Timeline |
| Vanfund Urban Investment |
| China Galaxy Securities |
Vanfund Urban and China Galaxy Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and China Galaxy
The main advantage of trading using opposite Vanfund Urban and China Galaxy positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, China Galaxy 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 China Galaxy will offset losses from the drop in China Galaxy's long position.| Vanfund Urban vs. PetroChina Co Ltd | Vanfund Urban vs. China Mobile Limited | Vanfund Urban vs. CNOOC Limited | Vanfund Urban vs. Ping An Insurance |
| China Galaxy vs. Kweichow Moutai Co | China Galaxy vs. Contemporary Amperex Technology | China Galaxy vs. G bits Network Technology | China Galaxy vs. BYD Co Ltd |
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 Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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