Correlation Between China World and China Vanke
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By analyzing existing cross correlation between China World Trade and China Vanke Co, you can compare the effects of market volatilities on China World 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 World with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of China World and China Vanke.
Diversification Opportunities for China World and China Vanke
-0.57 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between China and China is -0.57. Overlapping area represents the amount of risk that can be diversified away by holding China World Trade 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 World 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 World Trade 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 World i.e., China World and China Vanke go up and down completely randomly.
Pair Corralation between China World and China Vanke
Assuming the 90 days trading horizon China World Trade is expected to generate 0.42 times more return on investment than China Vanke. However, China World Trade is 2.39 times less risky than China Vanke. It trades about 0.14 of its potential returns per unit of risk. China Vanke Co is currently generating about 0.05 per unit of risk. If you would invest 2,419 in China World Trade on November 3, 2024 and sell it today you would earn a total of 77.00 from holding China World Trade or generate 3.18% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China World Trade vs. China Vanke Co
Performance |
| Timeline |
| China World Trade |
| China Vanke |
China World and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China World and China Vanke
The main advantage of trading using opposite China World and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China World 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 World vs. Quectel Wireless Solutions | China World vs. Chengdu B ray Media | China World vs. Fibocom Wireless | China World vs. Tongyu Communication |
| China Vanke vs. Yankershop Food Co | China Vanke vs. Jiamei Food Packaging | China Vanke vs. Anji Foodstuff Co | China Vanke vs. JuneYao Dairy Co |
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 Sectors module to list of equity sectors categorizing publicly traded companies based on their primary business activities.
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