Correlation Between CHINA VANKE and Chuangs China
Can any of the company-specific risk be diversified away by investing in both CHINA VANKE and Chuangs China at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CHINA VANKE and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CHINA VANKE TD and Chuangs China Investments, you can compare the effects of market volatilities on CHINA VANKE and Chuangs China 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 VANKE with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of CHINA VANKE and Chuangs China.
Diversification Opportunities for CHINA VANKE and Chuangs China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CHINA and Chuangs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CHINA VANKE TD and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and CHINA VANKE 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 VANKE TD are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of CHINA VANKE i.e., CHINA VANKE and Chuangs China go up and down completely randomly.
Pair Corralation between CHINA VANKE and Chuangs China
If you would invest 1.00 in Chuangs China Investments on September 2, 2024 and sell it today you would earn a total of 0.00 from holding Chuangs China Investments or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CHINA VANKE TD vs. Chuangs China Investments
Performance |
| Timeline |
| CHINA VANKE TD |
| Chuangs China Investments |
CHINA VANKE and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CHINA VANKE and Chuangs China
The main advantage of trading using opposite CHINA VANKE and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CHINA VANKE position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| CHINA VANKE vs. TRADEGATE | CHINA VANKE vs. Carsales | CHINA VANKE vs. DiamondRock Hospitality | CHINA VANKE vs. CARSALESCOM |
| Chuangs China vs. Corporate Office Properties | Chuangs China vs. 24SEVENOFFICE GROUP AB | Chuangs China vs. MTI WIRELESS EDGE | Chuangs China vs. Tower One Wireless |
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 Optimization module to compute new portfolio that will generate highest expected return given your specified tolerance for risk.
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