Correlation Between Poly Real and China Vanke
Specify exactly 2 symbols:
By analyzing existing cross correlation between Poly Real Estate and China Vanke Co, you can compare the effects of market volatilities on Poly Real 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 Poly Real with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Poly Real and China Vanke.
Diversification Opportunities for Poly Real and China Vanke
0.98 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Poly and China is 0.98. Overlapping area represents the amount of risk that can be diversified away by holding Poly Real Estate and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Poly Real 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 Poly Real Estate 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 Poly Real i.e., Poly Real and China Vanke go up and down completely randomly.
Pair Corralation between Poly Real and China Vanke
Assuming the 90 days trading horizon Poly Real Estate is expected to under-perform the China Vanke. But the stock apears to be less risky and, when comparing its historical volatility, Poly Real Estate is 1.06 times less risky than China Vanke. The stock trades about -0.27 of its potential returns per unit of risk. The China Vanke Co is currently generating about -0.25 of returns per unit of risk over similar time horizon. If you would invest 939.00 in China Vanke Co on August 28, 2024 and sell it today you would lose (101.00) from holding China Vanke Co or give up 10.76% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Poly Real Estate vs. China Vanke Co
Performance |
| Timeline |
| Poly Real Estate |
| China Vanke |
Poly Real and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Poly Real and China Vanke
The main advantage of trading using opposite Poly Real and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Poly Real 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.| Poly Real vs. Hangzhou Gaoxin Rubber | Poly Real vs. Humanwell Healthcare Group | Poly Real vs. Renxin New Material | Poly Real vs. Suzhou Xingye Material |
| China Vanke vs. Industrial and Commercial | China Vanke vs. China Construction Bank | China Vanke vs. Bank of China | China Vanke vs. Agricultural Bank of |
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 Dashboard module to portfolio dashboard that provides centralized access to all your investments.
Other Complementary Tools
| Portfolio Center All portfolio management and optimization tools to improve performance of your portfolios | |
| Bollinger Bands Use Bollinger Bands indicator to analyze target price for a given investing horizon | |
| Insider Screener Find insiders across different sectors to evaluate their impact on performance | |
| Companies Directory Evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals | |
| Economic Indicators Top statistical indicators that provide insights into how an economy is performing |