Correlation Between Zhangjiagang Freetrade and China Vanke
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By analyzing existing cross correlation between Zhangjiagang Freetrade Science and China Vanke Co, you can compare the effects of market volatilities on Zhangjiagang Freetrade 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 Zhangjiagang Freetrade with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Zhangjiagang Freetrade and China Vanke.
Diversification Opportunities for Zhangjiagang Freetrade and China Vanke
0.24 | Correlation Coefficient |
Modest diversification
The 3 months correlation between Zhangjiagang and China is 0.24. Overlapping area represents the amount of risk that can be diversified away by holding Zhangjiagang Freetrade Science and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Zhangjiagang Freetrade 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 Zhangjiagang Freetrade Science 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 Zhangjiagang Freetrade i.e., Zhangjiagang Freetrade and China Vanke go up and down completely randomly.
Pair Corralation between Zhangjiagang Freetrade and China Vanke
Assuming the 90 days trading horizon Zhangjiagang Freetrade Science is expected to under-perform the China Vanke. But the stock apears to be less risky and, when comparing its historical volatility, Zhangjiagang Freetrade Science is 1.89 times less risky than China Vanke. The stock trades about -0.04 of its potential returns per unit of risk. The China Vanke Co is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 711.00 in China Vanke Co on November 3, 2024 and sell it today you would earn a total of 16.00 from holding China Vanke Co or generate 2.25% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Zhangjiagang Freetrade Science vs. China Vanke Co
Performance |
| Timeline |
| Zhangjiagang Freetrade |
| China Vanke |
Zhangjiagang Freetrade and China Vanke Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Zhangjiagang Freetrade and China Vanke
The main advantage of trading using opposite Zhangjiagang Freetrade and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Zhangjiagang Freetrade 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.The idea behind Zhangjiagang Freetrade Science and China Vanke Co pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.
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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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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