Correlation Between Shanghai CEO and China Vanke

Specify exactly 2 symbols:
Can any of the company-specific risk be diversified away by investing in both Shanghai CEO and China Vanke at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Shanghai CEO and China Vanke into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Shanghai CEO Environmental and China Vanke Co, you can compare the effects of market volatilities on Shanghai CEO 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 Shanghai CEO with a short position of China Vanke. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shanghai CEO and China Vanke.

Diversification Opportunities for Shanghai CEO and China Vanke

0.83
  Correlation Coefficient

Very poor diversification

The 3 months correlation between Shanghai and China is 0.83. Overlapping area represents the amount of risk that can be diversified away by holding Shanghai CEO Environmental and China Vanke Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Vanke and Shanghai CEO 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 CEO Environmental 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 Shanghai CEO i.e., Shanghai CEO and China Vanke go up and down completely randomly.

Pair Corralation between Shanghai CEO and China Vanke

Assuming the 90 days trading horizon Shanghai CEO Environmental is expected to generate 20.67 times more return on investment than China Vanke. However, Shanghai CEO is 20.67 times more volatile than China Vanke Co. It trades about 0.05 of its potential returns per unit of risk. China Vanke Co is currently generating about -0.03 per unit of risk. If you would invest  2,451  in Shanghai CEO Environmental on September 12, 2024 and sell it today you would lose (1,425) from holding Shanghai CEO Environmental or give up 58.14% of portfolio value over 90 days.
Time Period3 Months [change]
DirectionMoves Together 
StrengthStrong
Accuracy100.0%
ValuesDaily Returns

Shanghai CEO Environmental  vs.  China Vanke Co

 Performance 
       Timeline  
Shanghai CEO Environ 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in Shanghai CEO Environmental are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, Shanghai CEO sustained solid returns over the last few months and may actually be approaching a breakup point.
China Vanke 

Risk-Adjusted Performance

13 of 100

 
Weak
 
Strong
Good
Compared to the overall equity markets, risk-adjusted returns on investments in China Vanke Co are ranked lower than 13 (%) of all global equities and portfolios over the last 90 days. Despite somewhat weak basic indicators, China Vanke sustained solid returns over the last few months and may actually be approaching a breakup point.

Shanghai CEO and China Vanke Volatility Contrast

   Predicted Return Density   
       Returns  

Pair Trading with Shanghai CEO and China Vanke

The main advantage of trading using opposite Shanghai CEO and China Vanke positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shanghai CEO 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.
Shanghai CEO vs. Agricultural Bank of
Shanghai CEO vs. Industrial and Commercial
Shanghai CEO vs. Bank of China
Shanghai CEO vs. PetroChina Co Ltd
The idea behind Shanghai CEO Environmental 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.
China Vanke vs. Sichuan Jinshi Technology
China Vanke vs. Xinjiang Communications Construction
China Vanke vs. Linewell Software Co
China Vanke vs. Tianjin Hi Tech Development
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 Anywhere module to track or share privately all of your investments from the convenience of any device.

Other Complementary Tools

Content Syndication
Quickly integrate customizable finance content to your own investment portal
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
FinTech Suite
Use AI to screen and filter profitable investment opportunities
Fundamentals Comparison
Compare fundamentals across multiple equities to find investing opportunities
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas


 
Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions
 
Feedback Blog
Made with optimal in San Francisco
2024 Macroaxis LLC
COMMON DESTINATIONS
MAIN CATEGORIES
COMPANY