Correlation Between China Asset and China Vanke
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By analyzing existing cross correlation between China Asset Management and China Vanke Co, you can compare the effects of market volatilities on China Asset 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 China Asset with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and China Vanke.
Diversification Opportunities for China Asset and China Vanke
-0.16 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and China is -0.16. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and China Asset 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 Asset Management 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 China Asset i.e., China Asset and China Vanke go up and down completely randomly.
Pair Corralation between China Asset and China Vanke
Assuming the 90 days trading horizon China Asset Management is expected to generate 0.73 times more return on investment than China Vanke. However, China Asset Management is 1.38 times less risky than China Vanke. It trades about 0.33 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 317.00 in China Asset Management on September 15, 2024 and sell it today you would earn a total of 28.00 from holding China Asset Management or generate 8.83% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. China Vanke Co
Performance |
| Timeline |
| China Asset Management |
| China Vanke |
China Asset and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and China Vanke
The main advantage of trading using opposite China Asset and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset 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.| China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited | China Asset vs. China Construction Bank |
| 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 Efficient Frontier module to plot and analyze your portfolio and positions against risk-return landscape of the market..
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