Correlation Between V V and China Asset
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By analyzing existing cross correlation between V V Food and China Asset Management, you can compare the effects of market volatilities on V V and China Asset 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 Asset. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and China Asset.
Diversification Opportunities for V V and China Asset
0.14 | Correlation Coefficient |
Average diversification
The 3 months correlation between 600300 and China is 0.14. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and China Asset Management in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Asset Management 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 Asset. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Asset Management has no effect on the direction of V V i.e., V V and China Asset go up and down completely randomly.
Pair Corralation between V V and China Asset
Assuming the 90 days trading horizon V V is expected to generate 5.34 times less return on investment than China Asset. In addition to that, V V is 2.97 times more volatile than China Asset Management. It trades about 0.02 of its total potential returns per unit of risk. China Asset Management is currently generating about 0.39 per unit of volatility. If you would invest 365.00 in China Asset Management on November 3, 2024 and sell it today you would earn a total of 31.00 from holding China Asset Management or generate 8.49% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
V V Food vs. China Asset Management
Performance |
| Timeline |
| V V Food |
| China Asset Management |
V V and China Asset Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and China Asset
The main advantage of trading using opposite V V and China Asset positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, China Asset 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 Asset will offset losses from the drop in China Asset's long position.| V V vs. Qtone Education Group | V V vs. Advanced Technology Materials | V V vs. GRIPM Advanced Materials | V V vs. Shandong Kuntai New |
| China Asset vs. Youyou Foods Co | China Asset vs. New Hope Dairy | China Asset vs. Chongqing Road Bridge | China Asset vs. Xinjiang Beixin RoadBridge |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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