Correlation Between PEPTONIC MEDICAL and Tencent Holdings
Can any of the company-specific risk be diversified away by investing in both PEPTONIC MEDICAL and Tencent Holdings 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 PEPTONIC MEDICAL and Tencent Holdings into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between PEPTONIC MEDICAL and Tencent Holdings Ltd, you can compare the effects of market volatilities on PEPTONIC MEDICAL and Tencent Holdings 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 PEPTONIC MEDICAL with a short position of Tencent Holdings. Check out your portfolio center. Please also check ongoing floating volatility patterns of PEPTONIC MEDICAL and Tencent Holdings.
Diversification Opportunities for PEPTONIC MEDICAL and Tencent Holdings
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between PEPTONIC and Tencent is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding PEPTONIC MEDICAL and Tencent Holdings Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Tencent Holdings and PEPTONIC MEDICAL 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 PEPTONIC MEDICAL are associated (or correlated) with Tencent Holdings. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Tencent Holdings has no effect on the direction of PEPTONIC MEDICAL i.e., PEPTONIC MEDICAL and Tencent Holdings go up and down completely randomly.
Pair Corralation between PEPTONIC MEDICAL and Tencent Holdings
If you would invest 0.02 in PEPTONIC MEDICAL on October 26, 2024 and sell it today you would earn a total of 0.00 from holding PEPTONIC MEDICAL or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
PEPTONIC MEDICAL vs. Tencent Holdings Ltd
Performance |
| Timeline |
| PEPTONIC MEDICAL |
| Tencent Holdings |
PEPTONIC MEDICAL and Tencent Holdings Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with PEPTONIC MEDICAL and Tencent Holdings
The main advantage of trading using opposite PEPTONIC MEDICAL and Tencent Holdings positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if PEPTONIC MEDICAL position performs unexpectedly, Tencent Holdings 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 Tencent Holdings will offset losses from the drop in Tencent Holdings' long position.| PEPTONIC MEDICAL vs. THAI BEVERAGE | PEPTONIC MEDICAL vs. Thai Beverage Public | PEPTONIC MEDICAL vs. Apollo Medical Holdings | PEPTONIC MEDICAL vs. CompuGroup Medical SE |
| Tencent Holdings vs. OPERA SOFTWARE | Tencent Holdings vs. CyberArk Software | Tencent Holdings vs. Magic Software Enterprises | Tencent Holdings vs. Unity Software |
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 Options Analysis module to analyze and evaluate options and option chains as a potential hedge for your portfolios.
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