Correlation Between VT Industrial and Liaoning Chengda
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By analyzing existing cross correlation between VT Industrial Technology and Liaoning Chengda Biotechnology, you can compare the effects of market volatilities on VT Industrial and Liaoning Chengda 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 VT Industrial with a short position of Liaoning Chengda. Check out your portfolio center. Please also check ongoing floating volatility patterns of VT Industrial and Liaoning Chengda.
Diversification Opportunities for VT Industrial and Liaoning Chengda
0.51 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 300707 and Liaoning is 0.51. Overlapping area represents the amount of risk that can be diversified away by holding VT Industrial Technology and Liaoning Chengda Biotechnology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Liaoning Chengda Bio and VT Industrial 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 VT Industrial Technology are associated (or correlated) with Liaoning Chengda. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Liaoning Chengda Bio has no effect on the direction of VT Industrial i.e., VT Industrial and Liaoning Chengda go up and down completely randomly.
Pair Corralation between VT Industrial and Liaoning Chengda
Assuming the 90 days trading horizon VT Industrial Technology is expected to generate 3.04 times more return on investment than Liaoning Chengda. However, VT Industrial is 3.04 times more volatile than Liaoning Chengda Biotechnology. It trades about -0.07 of its potential returns per unit of risk. Liaoning Chengda Biotechnology is currently generating about -0.31 per unit of risk. If you would invest 1,558 in VT Industrial Technology on October 20, 2024 and sell it today you would lose (101.00) from holding VT Industrial Technology or give up 6.48% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
VT Industrial Technology vs. Liaoning Chengda Biotechnology
Performance |
| Timeline |
| VT Industrial Technology |
| Liaoning Chengda Bio |
VT Industrial and Liaoning Chengda Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with VT Industrial and Liaoning Chengda
The main advantage of trading using opposite VT Industrial and Liaoning Chengda positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if VT Industrial position performs unexpectedly, Liaoning Chengda 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 Liaoning Chengda will offset losses from the drop in Liaoning Chengda's long position.| VT Industrial vs. Industrial and Commercial | VT Industrial vs. Agricultural Bank of | VT Industrial vs. China Construction Bank | VT Industrial vs. Bank of China |
| Liaoning Chengda vs. Jiangsu Financial Leasing | Liaoning Chengda vs. Shandong Sanyuan Biotechnology | Liaoning Chengda vs. Beijing Shunxin Agriculture | Liaoning Chengda vs. Mengtian Home Group |
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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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