Correlation Between V V and China Reform
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By analyzing existing cross correlation between V V Food and China Reform Health, you can compare the effects of market volatilities on V V and China Reform 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 V V with a short position of China Reform. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and China Reform.
Diversification Opportunities for V V and China Reform
0.68 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and China is 0.68. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and China Reform Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Reform Health and V V 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 V V Food are associated (or correlated) with China Reform. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Reform Health has no effect on the direction of V V i.e., V V and China Reform go up and down completely randomly.
Pair Corralation between V V and China Reform
Assuming the 90 days trading horizon V V Food is expected to generate 0.61 times more return on investment than China Reform. However, V V Food is 1.64 times less risky than China Reform. It trades about 0.47 of its potential returns per unit of risk. China Reform Health is currently generating about -0.03 per unit of risk. If you would invest 296.00 in V V Food on September 15, 2024 and sell it today you would earn a total of 102.00 from holding V V Food or generate 34.46% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. China Reform Health
Performance |
| Timeline |
| V V Food |
| China Reform Health |
V V and China Reform Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and China Reform
The main advantage of trading using opposite V V and China Reform positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, China Reform 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 Reform will offset losses from the drop in China Reform's long position.| V V vs. Nanjing Putian Telecommunications | V V vs. Tianjin Realty Development | V V vs. Kangyue Technology Co | V V vs. Shenzhen Hifuture Electric |
| China Reform vs. Jiangsu Jinling Sports | China Reform vs. V V Food | China Reform vs. Anji Foodstuff Co | China Reform vs. Shandong Polymer Biochemicals |
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 Volatility Analysis module to get historical volatility and risk analysis based on latest market data.
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