Correlation Between Tsang Yow and Chinese Maritime
Can any of the company-specific risk be diversified away by investing in both Tsang Yow 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 Tsang Yow and Chinese Maritime into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tsang Yow Industrial and Chinese Maritime Transport, you can compare the effects of market volatilities on Tsang Yow 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 Tsang Yow with a short position of Chinese Maritime. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tsang Yow and Chinese Maritime.
Diversification Opportunities for Tsang Yow and Chinese Maritime
0.38 | Correlation Coefficient |
Weak diversification
The 3 months correlation between Tsang and Chinese is 0.38. Overlapping area represents the amount of risk that can be diversified away by holding Tsang Yow Industrial 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 Tsang Yow 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 Tsang Yow Industrial 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 Tsang Yow i.e., Tsang Yow and Chinese Maritime go up and down completely randomly.
Pair Corralation between Tsang Yow and Chinese Maritime
Assuming the 90 days trading horizon Tsang Yow Industrial is expected to under-perform the Chinese Maritime. In addition to that, Tsang Yow is 1.12 times more volatile than Chinese Maritime Transport. It trades about -0.2 of its total potential returns per unit of risk. Chinese Maritime Transport is currently generating about -0.22 per unit of volatility. If you would invest 4,185 in Chinese Maritime Transport on October 13, 2024 and sell it today you would lose (220.00) from holding Chinese Maritime Transport or give up 5.26% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Tsang Yow Industrial vs. Chinese Maritime Transport
Performance |
| Timeline |
| Tsang Yow Industrial |
| Chinese Maritime Tra |
Tsang Yow and Chinese Maritime Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tsang Yow and Chinese Maritime
The main advantage of trading using opposite Tsang Yow and Chinese Maritime positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tsang Yow 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.| Tsang Yow vs. Gordon Auto Body | Tsang Yow vs. YCC Parts MFG | Tsang Yow vs. Depo Auto Parts | Tsang Yow vs. Hsing Ta Cement |
| Chinese Maritime vs. U Ming Marine Transport | Chinese Maritime vs. Sincere Navigation Corp | Chinese Maritime vs. Taiwan Navigation Co | Chinese Maritime vs. Huaku Development Co |
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.
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