Correlation Between Vanfund Urban and Sichuan Hebang
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By analyzing existing cross correlation between Vanfund Urban Investment and Sichuan Hebang Biotechnology, you can compare the effects of market volatilities on Vanfund Urban and Sichuan Hebang 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 Sichuan Hebang. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Sichuan Hebang.
Diversification Opportunities for Vanfund Urban and Sichuan Hebang
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Vanfund and Sichuan is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Sichuan Hebang Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sichuan Hebang Biote 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 Sichuan Hebang. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sichuan Hebang Biote has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Sichuan Hebang go up and down completely randomly.
Pair Corralation between Vanfund Urban and Sichuan Hebang
Assuming the 90 days trading horizon Vanfund Urban Investment is expected to under-perform the Sichuan Hebang. In addition to that, Vanfund Urban is 1.29 times more volatile than Sichuan Hebang Biotechnology. It trades about -0.09 of its total potential returns per unit of risk. Sichuan Hebang Biotechnology is currently generating about 0.06 per unit of volatility. If you would invest 205.00 in Sichuan Hebang Biotechnology on September 5, 2024 and sell it today you would earn a total of 5.00 from holding Sichuan Hebang Biotechnology or generate 2.44% 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. Sichuan Hebang Biotechnology
Performance |
| Timeline |
| Vanfund Urban Investment |
| Sichuan Hebang Biote |
Vanfund Urban and Sichuan Hebang Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Sichuan Hebang
The main advantage of trading using opposite Vanfund Urban and Sichuan Hebang positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Sichuan Hebang 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 Sichuan Hebang will offset losses from the drop in Sichuan Hebang's 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 |
| Sichuan Hebang vs. Vanfund Urban Investment | Sichuan Hebang vs. Jointo Energy Investment | Sichuan Hebang vs. Yindu Kitchen Equipment | Sichuan Hebang vs. Tieling Newcity 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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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