Correlation Between Heartland Financial and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Heartland Financial 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 Heartland Financial and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Heartland Financial USA and CHINA TONTINE WINES, you can compare the effects of market volatilities on Heartland Financial 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 Heartland Financial with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Heartland Financial and CHINA TONTINE.
Diversification Opportunities for Heartland Financial and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Heartland and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Heartland Financial USA 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 Heartland Financial 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 Heartland Financial USA 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 Heartland Financial i.e., Heartland Financial and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Heartland Financial and CHINA TONTINE
If you would invest 5,324 in Heartland Financial USA on September 3, 2024 and sell it today you would earn a total of 1,026 from holding Heartland Financial USA or generate 19.27% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
Heartland Financial USA vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Heartland Financial USA |
| CHINA TONTINE WINES |
Heartland Financial and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Heartland Financial and CHINA TONTINE
The main advantage of trading using opposite Heartland Financial and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Heartland Financial 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.| Heartland Financial vs. FIREWEED METALS P | Heartland Financial vs. Constellation Software | Heartland Financial vs. JAPAN TOBACCO UNSPADR12 | Heartland Financial vs. Jacquet Metal Service |
| CHINA TONTINE vs. Superior Plus Corp | CHINA TONTINE vs. NMI Holdings | CHINA TONTINE vs. Origin Agritech | CHINA TONTINE vs. SIVERS SEMICONDUCTORS AB |
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 Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.
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