Correlation Between China Fortune and Poly Real
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By analyzing existing cross correlation between China Fortune Land and Poly Real Estate, you can compare the effects of market volatilities on China Fortune and Poly Real 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 China Fortune with a short position of Poly Real. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Fortune and Poly Real.
Diversification Opportunities for China Fortune and Poly Real
0.35 | Correlation Coefficient |
Weak diversification
The 3 months correlation between China and Poly is 0.35. Overlapping area represents the amount of risk that can be diversified away by holding China Fortune Land and Poly Real Estate in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Poly Real Estate and China Fortune 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 China Fortune Land are associated (or correlated) with Poly Real. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Poly Real Estate has no effect on the direction of China Fortune i.e., China Fortune and Poly Real go up and down completely randomly.
Pair Corralation between China Fortune and Poly Real
Assuming the 90 days trading horizon China Fortune Land is expected to under-perform the Poly Real. In addition to that, China Fortune is 2.31 times more volatile than Poly Real Estate. It trades about -0.26 of its total potential returns per unit of risk. Poly Real Estate is currently generating about -0.14 per unit of volatility. If you would invest 868.00 in Poly Real Estate on November 2, 2024 and sell it today you would lose (36.00) from holding Poly Real Estate or give up 4.15% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Fortune Land vs. Poly Real Estate
Performance |
| Timeline |
| China Fortune Land |
| Poly Real Estate |
China Fortune and Poly Real Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Fortune and Poly Real
The main advantage of trading using opposite China Fortune and Poly Real positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Fortune position performs unexpectedly, Poly Real 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 Poly Real will offset losses from the drop in Poly Real's long position.| China Fortune vs. Shanghai Ziyan Foods | China Fortune vs. Youyou Foods Co | China Fortune vs. Chengdu Spaceon Electronics | China Fortune vs. Ligao Foods CoLtd |
| Poly Real vs. Bloomage Biotechnology Corp | Poly Real vs. Fujian Wanchen Biotechnology | Poly Real vs. Shanghai Ziyan Foods | Poly Real vs. Yili Chuanning Biotechnology |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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