Correlation Between Corporate Travel and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Corporate Travel and CHINA TONTINE 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 Corporate Travel and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Corporate Travel Management and CHINA TONTINE WINES, you can compare the effects of market volatilities on Corporate Travel and CHINA TONTINE 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 Corporate Travel with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Corporate Travel and CHINA TONTINE.
Diversification Opportunities for Corporate Travel and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Corporate and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Corporate Travel Management and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and Corporate Travel 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 Corporate Travel Management are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Corporate Travel i.e., Corporate Travel and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Corporate Travel and CHINA TONTINE
If you would invest 765.00 in Corporate Travel Management on November 5, 2024 and sell it today you would earn a total of 125.00 from holding Corporate Travel Management or generate 16.34% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Corporate Travel Management vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Corporate Travel Man |
| CHINA TONTINE WINES |
Corporate Travel and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Corporate Travel and CHINA TONTINE
The main advantage of trading using opposite Corporate Travel and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Corporate Travel position performs unexpectedly, CHINA TONTINE 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 TONTINE will offset losses from the drop in CHINA TONTINE's long position.| Corporate Travel vs. TIANDE CHEMICAL | Corporate Travel vs. Eastman Chemical | Corporate Travel vs. CHEMICAL INDUSTRIES | Corporate Travel vs. INDO RAMA SYNTHETIC |
| CHINA TONTINE vs. MGP Ingredients | CHINA TONTINE vs. NAKED WINES PLC | CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. Origin Agritech |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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