Correlation Between Industrial and Vanfund Urban
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By analyzing existing cross correlation between Industrial and Commercial and Vanfund Urban Investment, you can compare the effects of market volatilities on Industrial 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 Industrial with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Industrial and Vanfund Urban.
Diversification Opportunities for Industrial and Vanfund Urban
0.61 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Industrial and Vanfund is 0.61. Overlapping area represents the amount of risk that can be diversified away by holding Industrial and Commercial 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 Industrial 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 Industrial and Commercial 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 Industrial i.e., Industrial and Vanfund Urban go up and down completely randomly.
Pair Corralation between Industrial and Vanfund Urban
Assuming the 90 days trading horizon Industrial is expected to generate 1.3 times less return on investment than Vanfund Urban. But when comparing it to its historical volatility, Industrial and Commercial is 2.6 times less risky than Vanfund Urban. It trades about 0.25 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.13 of returns per unit of risk over similar time horizon. If you would invest 523.00 in Vanfund Urban Investment on September 18, 2024 and sell it today you would earn a total of 36.00 from holding Vanfund Urban Investment or generate 6.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 95.45% |
| Values | Daily Returns |
Industrial and Commercial vs. Vanfund Urban Investment
Performance |
| Timeline |
| Industrial and Commercial |
| Vanfund Urban Investment |
Industrial and Vanfund Urban Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Industrial and Vanfund Urban
The main advantage of trading using opposite Industrial and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Industrial 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.| Industrial vs. China Construction Bank | Industrial vs. Agricultural Bank of | Industrial vs. Bank of China | Industrial vs. PetroChina Co Ltd |
| Vanfund Urban vs. Ming Yang Smart | Vanfund Urban vs. 159681 | Vanfund Urban vs. 159005 | Vanfund Urban vs. Loctek Ergonomic Technology |
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 Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.
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