Correlation Between TTET Union and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both TTET Union and Chinese Maritime 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 TTET Union and Chinese Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between TTET Union Corp and Chinese Maritime Transport, you can compare the effects of market volatilities on TTET Union and Chinese Maritime 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 TTET Union with a short position of Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of TTET Union and Chinese Maritime.
Diversification Opportunities for TTET Union and Chinese Maritime
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between TTET and Chinese is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding TTET Union Corp and Chinese Maritime Transport in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chinese Maritime Tra and TTET Union 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 TTET Union Corp are associated (or correlated) with Chinese Maritime. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chinese Maritime Tra has no effect on the direction of TTET Union i.e., TTET Union and Chinese Maritime go up and down completely randomly.
Pair Corralation between TTET Union and Chinese Maritime
Assuming the 90 days trading horizon TTET Union Corp is expected to under-perform the Chinese Maritime. But the stock apears to be less risky and, when comparing its historical volatility, TTET Union Corp is 2.31 times less risky than Chinese Maritime. The stock trades about -0.33 of its potential returns per unit of risk. The Chinese Maritime Transport is currently generating about 0.09 of returns per unit of risk over similar time horizon. If you would invest 4,350 in Chinese Maritime Transport on August 28, 2024 and sell it today you would earn a total of 140.00 from holding Chinese Maritime Transport or generate 3.22% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
TTET Union Corp vs. Chinese Maritime Transport
Performance |
| Timeline |
| TTET Union Corp |
| Chinese Maritime Tra |
TTET Union and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with TTET Union and Chinese Maritime
The main advantage of trading using opposite TTET Union and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if TTET Union position performs unexpectedly, Chinese Maritime 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 Chinese Maritime will offset losses from the drop in Chinese Maritime's long position.| TTET Union vs. Charoen Pokphand Enterprise | TTET Union vs. Standard Foods Corp | TTET Union vs. Uni President Enterprises Corp | TTET Union vs. Great Wall Enterprise |
| Chinese Maritime vs. Sunny Friend Environmental | Chinese Maritime vs. TTET Union Corp | Chinese Maritime vs. ECOVE Environment Corp | Chinese Maritime vs. Yulon Finance Corp |
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 Sync Your Broker module to sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors..
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