Correlation Between China Asset and Vanfund Urban
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By analyzing existing cross correlation between China Asset Management and Vanfund Urban Investment, you can compare the effects of market volatilities on China Asset and Vanfund Urban 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 Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Asset and Vanfund Urban.
Diversification Opportunities for China Asset and Vanfund Urban
-0.52 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and Vanfund is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding China Asset Management and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment 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 Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of China Asset i.e., China Asset and Vanfund Urban go up and down completely randomly.
Pair Corralation between China Asset and Vanfund Urban
Assuming the 90 days trading horizon China Asset is expected to generate 8.06 times less return on investment than Vanfund Urban. But when comparing it to its historical volatility, China Asset Management is 4.37 times less risky than Vanfund Urban. It trades about 0.05 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 512.00 in Vanfund Urban Investment on August 29, 2024 and sell it today you would earn a total of 36.00 from holding Vanfund Urban Investment or generate 7.03% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Asset Management vs. Vanfund Urban Investment
Performance |
| Timeline |
| China Asset Management |
| Vanfund Urban Investment |
China Asset and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Asset and Vanfund Urban
The main advantage of trading using opposite China Asset and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Asset position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| China Asset vs. Industrial and Commercial | China Asset vs. Kweichow Moutai Co | China Asset vs. Agricultural Bank of | China Asset vs. China Mobile Limited |
| Vanfund Urban vs. HaiXin Foods Co | Vanfund Urban vs. Juewei Food Co | Vanfund Urban vs. Touchstone International Medical | Vanfund Urban vs. Jiajia Food 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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
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