Correlation Between China Merchants and V V
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By analyzing existing cross correlation between China Merchants Shekou and V V Food, you can compare the effects of market volatilities on China Merchants and V V 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 China Merchants with a short position of V V. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Merchants and V V.
Diversification Opportunities for China Merchants and V V
0.84 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and 600300 is 0.84. Overlapping area represents the amount of risk that can be diversified away by holding China Merchants Shekou and V V Food in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on V V Food and China Merchants 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 China Merchants Shekou are associated (or correlated) with V V. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of V V Food has no effect on the direction of China Merchants i.e., China Merchants and V V go up and down completely randomly.
Pair Corralation between China Merchants and V V
Assuming the 90 days trading horizon China Merchants is expected to generate 1.12 times less return on investment than V V. In addition to that, China Merchants is 1.56 times more volatile than V V Food. It trades about 0.0 of its total potential returns per unit of risk. V V Food is currently generating about 0.01 per unit of volatility. If you would invest 349.00 in V V Food on September 13, 2024 and sell it today you would earn a total of 0.00 from holding V V Food or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Merchants Shekou vs. V V Food
Performance |
| Timeline |
| China Merchants Shekou |
| V V Food |
China Merchants and V V Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Merchants and V V
The main advantage of trading using opposite China Merchants and V V positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Merchants position performs unexpectedly, V V 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 V V will offset losses from the drop in V V's long position.| China Merchants vs. Shandong Publishing Media | China Merchants vs. Offshore Oil Engineering | China Merchants vs. Xinjiang Beixin RoadBridge | China Merchants vs. Beijing Kaiwen Education |
| V V vs. Nanjing Putian Telecommunications | V V vs. Tianjin Realty Development | V V vs. Kangyue Technology Co | V V vs. Shenzhen Hifuture Electric |
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 Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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