Correlation Between Shanghai Jinfeng and Vanfund Urban
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By analyzing existing cross correlation between Shanghai Jinfeng Wine and Vanfund Urban Investment, you can compare the effects of market volatilities on Shanghai Jinfeng and Vanfund Urban 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 Shanghai Jinfeng with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai Jinfeng and Vanfund Urban.
Diversification Opportunities for Shanghai Jinfeng and Vanfund Urban
0.89 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Shanghai and Vanfund is 0.89. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai Jinfeng Wine and Vanfund Urban Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Vanfund Urban Investment and Shanghai Jinfeng 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 Shanghai Jinfeng Wine are associated (or correlated) with Vanfund Urban. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Vanfund Urban Investment has no effect on the direction of Shanghai Jinfeng i.e., Shanghai Jinfeng and Vanfund Urban go up and down completely randomly.
Pair Corralation between Shanghai Jinfeng and Vanfund Urban
Assuming the 90 days trading horizon Shanghai Jinfeng is expected to generate 2.71 times less return on investment than Vanfund Urban. But when comparing it to its historical volatility, Shanghai Jinfeng Wine is 1.34 times less risky than Vanfund Urban. It trades about 0.05 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 394.00 in Vanfund Urban Investment on August 30, 2024 and sell it today you would earn a total of 162.00 from holding Vanfund Urban Investment or generate 41.12% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Shanghai Jinfeng Wine vs. Vanfund Urban Investment
Performance |
| Timeline |
| Shanghai Jinfeng Wine |
| Vanfund Urban Investment |
Shanghai Jinfeng and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Shanghai Jinfeng and Vanfund Urban
The main advantage of trading using opposite Shanghai Jinfeng and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai Jinfeng position performs unexpectedly, Vanfund Urban 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 Vanfund Urban will offset losses from the drop in Vanfund Urban's long position.| Shanghai Jinfeng vs. Sportsoul Co Ltd | Shanghai Jinfeng vs. Anhui Jianghuai Automobile | Shanghai Jinfeng vs. State Grid InformationCommunication | Shanghai Jinfeng vs. Tongyu Communication |
| Vanfund Urban vs. Chengdu Kanghua Biological | Vanfund Urban vs. Beijing Wantai Biological | Vanfund Urban vs. Suzhou Novoprotein Scientific | Vanfund Urban vs. Aluminum Corp of |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
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