Correlation Between Shenzhen SDG and Vanfund Urban
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By analyzing existing cross correlation between Shenzhen SDG Information and Vanfund Urban Investment, you can compare the effects of market volatilities on Shenzhen SDG 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 Shenzhen SDG with a short position of Vanfund Urban. Check out your portfolio center. Please also check ongoing floating volatility patterns of Shenzhen SDG and Vanfund Urban.
Diversification Opportunities for Shenzhen SDG and Vanfund Urban
0.96 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Shenzhen and Vanfund is 0.96. Overlapping area represents the amount of risk that can be diversified away by holding Shenzhen SDG Information 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 Shenzhen SDG 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 Shenzhen SDG Information 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 Shenzhen SDG i.e., Shenzhen SDG and Vanfund Urban go up and down completely randomly.
Pair Corralation between Shenzhen SDG and Vanfund Urban
Assuming the 90 days trading horizon Shenzhen SDG is expected to generate 1.23 times less return on investment than Vanfund Urban. But when comparing it to its historical volatility, Shenzhen SDG Information is 1.38 times less risky than Vanfund Urban. It trades about 0.28 of its potential returns per unit of risk. Vanfund Urban Investment is currently generating about 0.25 of returns per unit of risk over similar time horizon. If you would invest 372.00 in Vanfund Urban Investment on September 12, 2024 and sell it today you would earn a total of 232.00 from holding Vanfund Urban Investment or generate 62.37% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Moves Together |
Strength | Very Strong |
Accuracy | 100.0% |
Values | Daily Returns |
Shenzhen SDG Information vs. Vanfund Urban Investment
Performance |
Timeline |
Shenzhen SDG Information |
Vanfund Urban Investment |
Shenzhen SDG and Vanfund Urban Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with Shenzhen SDG and Vanfund Urban
The main advantage of trading using opposite Shenzhen SDG and Vanfund Urban positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Shenzhen SDG 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.Shenzhen SDG vs. Industrial and Commercial | Shenzhen SDG vs. China Construction Bank | Shenzhen SDG vs. Bank of China | Shenzhen SDG vs. Agricultural Bank of |
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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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
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