Correlation Between Xiamen CD and China Vanke
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By analyzing existing cross correlation between Xiamen CD and China Vanke Co, you can compare the effects of market volatilities on Xiamen CD 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 Xiamen CD with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Xiamen CD and China Vanke.
Diversification Opportunities for Xiamen CD and China Vanke
-0.03 | Correlation Coefficient |
Good diversification
The 3 months correlation between Xiamen and China is -0.03. Overlapping area represents the amount of risk that can be diversified away by holding Xiamen CD and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Xiamen CD 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 Xiamen CD 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 Xiamen CD i.e., Xiamen CD and China Vanke go up and down completely randomly.
Pair Corralation between Xiamen CD and China Vanke
Assuming the 90 days trading horizon Xiamen CD is expected to under-perform the China Vanke. But the stock apears to be less risky and, when comparing its historical volatility, Xiamen CD is 1.61 times less risky than China Vanke. The stock trades about -0.12 of its potential returns per unit of risk. The China Vanke Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 711.00 in China Vanke Co on November 2, 2024 and sell it today you would earn a total of 16.00 from holding China Vanke Co or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Xiamen CD vs. China Vanke Co
Performance |
| Timeline |
| Xiamen CD |
| China Vanke |
Xiamen CD and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Xiamen CD and China Vanke
The main advantage of trading using opposite Xiamen CD and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Xiamen CD 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.| Xiamen CD vs. Shanghai Rongtai Health | Xiamen CD vs. YiDong Electronics Technology | Xiamen CD vs. Youngy Health Co | Xiamen CD vs. Everjoy Health Group |
| China Vanke vs. Aier Eye Hospital | China Vanke vs. Youngy Health Co | China Vanke vs. De Rucci Healthy | China Vanke vs. PKU HealthCare Corp |
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 Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
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