Correlation Between Vanfund Urban and Shanghai Shuixing
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By analyzing existing cross correlation between Vanfund Urban Investment and Shanghai Shuixing Home, you can compare the effects of market volatilities on Vanfund Urban and Shanghai Shuixing 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 Shuixing. Check out your portfolio center. Please also check ongoing floating volatility patterns of Vanfund Urban and Shanghai Shuixing.
Diversification Opportunities for Vanfund Urban and Shanghai Shuixing
0.74 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Vanfund and Shanghai is 0.74. Overlapping area represents the amount of risk that can be diversified away by holding Vanfund Urban Investment and Shanghai Shuixing Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Shanghai Shuixing Home 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 Shuixing. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Shanghai Shuixing Home has no effect on the direction of Vanfund Urban i.e., Vanfund Urban and Shanghai Shuixing go up and down completely randomly.
Pair Corralation between Vanfund Urban and Shanghai Shuixing
Assuming the 90 days trading horizon Vanfund Urban is expected to generate 3.09 times less return on investment than Shanghai Shuixing. In addition to that, Vanfund Urban is 1.67 times more volatile than Shanghai Shuixing Home. It trades about 0.01 of its total potential returns per unit of risk. Shanghai Shuixing Home is currently generating about 0.03 per unit of volatility. If you would invest 1,424 in Shanghai Shuixing Home on September 1, 2024 and sell it today you would earn a total of 220.00 from holding Shanghai Shuixing Home or generate 15.45% 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. Shanghai Shuixing Home
Performance |
| Timeline |
| Vanfund Urban Investment |
| Shanghai Shuixing Home |
Vanfund Urban and Shanghai Shuixing Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Vanfund Urban and Shanghai Shuixing
The main advantage of trading using opposite Vanfund Urban and Shanghai Shuixing positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Vanfund Urban position performs unexpectedly, Shanghai Shuixing 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 Shuixing will offset losses from the drop in Shanghai Shuixing'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 Shuixing vs. Chengdu Kanghua Biological | Shanghai Shuixing vs. Beijing Wantai Biological | Shanghai Shuixing vs. Suzhou Novoprotein Scientific | Shanghai Shuixing vs. Aluminum Corp of |
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 My Watchlist Analysis module to analyze my current watchlist and to refresh optimization strategy. Macroaxis watchlist is based on self-learning algorithm to remember stocks you like.
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