Correlation Between V V and Beijing Quanshi
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By analyzing existing cross correlation between V V Food and Beijing Quanshi World, you can compare the effects of market volatilities on V V and Beijing Quanshi 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 Beijing Quanshi. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and Beijing Quanshi.
Diversification Opportunities for V V and Beijing Quanshi
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between 600300 and Beijing is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and Beijing Quanshi World in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Beijing Quanshi World 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 Beijing Quanshi. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Beijing Quanshi World has no effect on the direction of V V i.e., V V and Beijing Quanshi go up and down completely randomly.
Pair Corralation between V V and Beijing Quanshi
Assuming the 90 days trading horizon V V Food is expected to generate 0.52 times more return on investment than Beijing Quanshi. However, V V Food is 1.93 times less risky than Beijing Quanshi. It trades about 0.05 of its potential returns per unit of risk. Beijing Quanshi World is currently generating about 0.01 per unit of risk. If you would invest 313.00 in V V Food on September 14, 2024 and sell it today you would earn a total of 71.00 from holding V V Food or generate 22.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. Beijing Quanshi World
Performance |
| Timeline |
| V V Food |
| Beijing Quanshi World |
V V and Beijing Quanshi Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and Beijing Quanshi
The main advantage of trading using opposite V V and Beijing Quanshi positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, Beijing Quanshi 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 Beijing Quanshi will offset losses from the drop in Beijing Quanshi'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 |
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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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