Correlation Between Sichuan Yahua and China Vanke
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By analyzing existing cross correlation between Sichuan Yahua Industrial and China Vanke Co, you can compare the effects of market volatilities on Sichuan Yahua and China Vanke 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 Sichuan Yahua with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Sichuan Yahua and China Vanke.
Diversification Opportunities for Sichuan Yahua and China Vanke
0.59 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Sichuan and China is 0.59. Overlapping area represents the amount of risk that can be diversified away by holding Sichuan Yahua Industrial and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Sichuan Yahua 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 Sichuan Yahua Industrial are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Sichuan Yahua i.e., Sichuan Yahua and China Vanke go up and down completely randomly.
Pair Corralation between Sichuan Yahua and China Vanke
Assuming the 90 days trading horizon Sichuan Yahua Industrial is expected to generate 1.85 times more return on investment than China Vanke. However, Sichuan Yahua is 1.85 times more volatile than China Vanke Co. It trades about 0.26 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.17 per unit of risk. If you would invest 1,146 in Sichuan Yahua Industrial on September 15, 2024 and sell it today you would earn a total of 201.00 from holding Sichuan Yahua Industrial or generate 17.54% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Sichuan Yahua Industrial vs. China Vanke Co
Performance |
| Timeline |
| Sichuan Yahua Industrial |
| China Vanke |
Sichuan Yahua and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Sichuan Yahua and China Vanke
The main advantage of trading using opposite Sichuan Yahua and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Sichuan Yahua position performs unexpectedly, China Vanke 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 Vanke will offset losses from the drop in China Vanke's long position.| Sichuan Yahua vs. Zijin Mining Group | Sichuan Yahua vs. Wanhua Chemical Group | Sichuan Yahua vs. Baoshan Iron Steel | Sichuan Yahua vs. Shandong Gold Mining |
| China Vanke vs. AVIC Fund Management | China Vanke vs. China Asset Management | China Vanke vs. Dazhong Transportation Group | China Vanke vs. Harvest Fund Management |
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 FinTech Suite module to use AI to screen and filter profitable investment opportunities.
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