Correlation Between V V and China State
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By analyzing existing cross correlation between V V Food and China State Construction, you can compare the effects of market volatilities on V V and China State 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 State. Check out your portfolio center. Please also check ongoing floating volatility patterns of V V and China State.
Diversification Opportunities for V V and China State
0.75 | Correlation Coefficient |
Poor diversification
The 3 months correlation between 600300 and China is 0.75. Overlapping area represents the amount of risk that can be diversified away by holding V V Food and China State Construction in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China State Construction 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 State. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China State Construction has no effect on the direction of V V i.e., V V and China State go up and down completely randomly.
Pair Corralation between V V and China State
Assuming the 90 days trading horizon V V Food is expected to generate 1.03 times more return on investment than China State. However, V V is 1.03 times more volatile than China State Construction. It trades about 0.17 of its potential returns per unit of risk. China State Construction is currently generating about -0.02 per unit of risk. If you would invest 296.00 in V V Food on September 5, 2024 and sell it today you would earn a total of 23.00 from holding V V Food or generate 7.77% 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 State Construction
Performance |
| Timeline |
| V V Food |
| China State Construction |
V V and China State Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with V V and China State
The main advantage of trading using opposite V V and China State positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if V V position performs unexpectedly, China State 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 State will offset losses from the drop in China State's long position.| V V vs. Poly Real Estate | V V vs. China Vanke Co | V V vs. China Merchants Shekou | V V vs. Huafa Industrial Co |
| China State vs. HaiXin Foods Co | China State vs. Zhejiang Yayi Metal | China State vs. V V Food | China State vs. Youyou Foods Co |
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 Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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