Correlation Between Wuhan Yangtze and China Vanke
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By analyzing existing cross correlation between Wuhan Yangtze Communication and China Vanke Co, you can compare the effects of market volatilities on Wuhan Yangtze and China Vanke 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 Wuhan Yangtze with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Wuhan Yangtze and China Vanke.
Diversification Opportunities for Wuhan Yangtze and China Vanke
-0.27 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Wuhan and China is -0.27. Overlapping area represents the amount of risk that can be diversified away by holding Wuhan Yangtze Communication and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Wuhan Yangtze 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 Wuhan Yangtze Communication are associated (or correlated) with China Vanke. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Vanke has no effect on the direction of Wuhan Yangtze i.e., Wuhan Yangtze and China Vanke go up and down completely randomly.
Pair Corralation between Wuhan Yangtze and China Vanke
Assuming the 90 days trading horizon Wuhan Yangtze Communication is expected to under-perform the China Vanke. In addition to that, Wuhan Yangtze is 2.29 times more volatile than China Vanke Co. It trades about -0.36 of its total potential returns per unit of risk. China Vanke Co is currently generating about -0.71 per unit of volatility. If you would invest 823.00 in China Vanke Co on October 16, 2024 and sell it today you would lose (147.00) from holding China Vanke Co or give up 17.86% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Wuhan Yangtze Communication vs. China Vanke Co
Performance |
| Timeline |
| Wuhan Yangtze Commun |
| China Vanke |
Wuhan Yangtze and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Wuhan Yangtze and China Vanke
The main advantage of trading using opposite Wuhan Yangtze and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Wuhan Yangtze position performs unexpectedly, China Vanke 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 Vanke will offset losses from the drop in China Vanke's long position.| Wuhan Yangtze vs. Pengxin International Mining | Wuhan Yangtze vs. Chenzhou Jingui Silver | Wuhan Yangtze vs. Jinling Hotel Corp | Wuhan Yangtze vs. Hainan Mining Co |
| China Vanke vs. Wuhan Yangtze Communication | China Vanke vs. Telling Telecommunication Holding | China Vanke vs. Zhongzhu Medical Holdings | China Vanke vs. Bohai Leasing 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 Idea Optimizer module to use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio .
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