Correlation Between Chinese Maritime and Sporton International
Can any of the company-specific risk be diversified away by investing in both Chinese Maritime and Sporton International 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 Chinese Maritime and Sporton International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chinese Maritime Transport and Sporton International, you can compare the effects of market volatilities on Chinese Maritime and Sporton International 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 Chinese Maritime with a short position of Sporton International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chinese Maritime and Sporton International.
Diversification Opportunities for Chinese Maritime and Sporton International
-0.09 | Correlation Coefficient |
Good diversification
The 3 months correlation between Chinese and Sporton is -0.09. Overlapping area represents the amount of risk that can be diversified away by holding Chinese Maritime Transport and Sporton International in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Sporton International and Chinese Maritime 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 Chinese Maritime Transport are associated (or correlated) with Sporton International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Sporton International has no effect on the direction of Chinese Maritime i.e., Chinese Maritime and Sporton International go up and down completely randomly.
Pair Corralation between Chinese Maritime and Sporton International
Assuming the 90 days trading horizon Chinese Maritime Transport is expected to generate 1.16 times more return on investment than Sporton International. However, Chinese Maritime is 1.16 times more volatile than Sporton International. It trades about 0.02 of its potential returns per unit of risk. Sporton International is currently generating about -0.01 per unit of risk. If you would invest 4,085 in Chinese Maritime Transport on September 2, 2024 and sell it today you would earn a total of 215.00 from holding Chinese Maritime Transport or generate 5.26% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chinese Maritime Transport vs. Sporton International
Performance |
| Timeline |
| Chinese Maritime Tra |
| Sporton International |
Chinese Maritime and Sporton International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chinese Maritime and Sporton International
The main advantage of trading using opposite Chinese Maritime and Sporton International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chinese Maritime position performs unexpectedly, Sporton International 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 Sporton International will offset losses from the drop in Sporton International's long position.| Chinese Maritime vs. BES Engineering Co | Chinese Maritime vs. Continental Holdings Corp | Chinese Maritime vs. Kee Tai Properties | Chinese Maritime vs. Hung Sheng Construction |
| Sporton International vs. Hunya Foods Co | Sporton International vs. Microtips Technology | Sporton International vs. Intai Technology | Sporton International vs. Univacco Technology |
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 Pattern Recognition module to use different Pattern Recognition models to time the market across multiple global exchanges.
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