Correlation Between CK HUTCHISON and Grupo Carso
Can any of the company-specific risk be diversified away by investing in both CK HUTCHISON and Grupo Carso 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 CK HUTCHISON and Grupo Carso into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK HUTCHISON HLDGS and Grupo Carso SAB, you can compare the effects of market volatilities on CK HUTCHISON and Grupo Carso 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 CK HUTCHISON with a short position of Grupo Carso. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK HUTCHISON and Grupo Carso.
Diversification Opportunities for CK HUTCHISON and Grupo Carso
0.55 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between 2CKA and Grupo is 0.55. Overlapping area represents the amount of risk that can be diversified away by holding CK HUTCHISON HLDGS and Grupo Carso SAB in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Grupo Carso SAB and CK HUTCHISON 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 CK HUTCHISON HLDGS are associated (or correlated) with Grupo Carso. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Grupo Carso SAB has no effect on the direction of CK HUTCHISON i.e., CK HUTCHISON and Grupo Carso go up and down completely randomly.
Pair Corralation between CK HUTCHISON and Grupo Carso
Assuming the 90 days trading horizon CK HUTCHISON HLDGS is expected to generate 0.4 times more return on investment than Grupo Carso. However, CK HUTCHISON HLDGS is 2.51 times less risky than Grupo Carso. It trades about 0.26 of its potential returns per unit of risk. Grupo Carso SAB is currently generating about 0.04 per unit of risk. If you would invest 460.00 in CK HUTCHISON HLDGS on September 12, 2024 and sell it today you would earn a total of 30.00 from holding CK HUTCHISON HLDGS or generate 6.52% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK HUTCHISON HLDGS vs. Grupo Carso SAB
Performance |
| Timeline |
| CK HUTCHISON HLDGS |
| Grupo Carso SAB |
CK HUTCHISON and Grupo Carso Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK HUTCHISON and Grupo Carso
The main advantage of trading using opposite CK HUTCHISON and Grupo Carso positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK HUTCHISON position performs unexpectedly, Grupo Carso 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 Grupo Carso will offset losses from the drop in Grupo Carso's long position.| CK HUTCHISON vs. TSOGO SUN GAMING | CK HUTCHISON vs. Media and Games | CK HUTCHISON vs. GAMESTOP | CK HUTCHISON vs. Boyd Gaming |
| Grupo Carso vs. ITOCHU | Grupo Carso vs. Marubeni | Grupo Carso vs. Sumitomo | Grupo Carso vs. Superior Plus Corp |
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 Idea Breakdown module to analyze constituents of all Macroaxis ideas. Macroaxis investment ideas are predefined, sector-focused investing themes.
Other Complementary Tools
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Sign In To Macroaxis Sign in to explore Macroaxis' wealth optimization platform and fintech modules | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency |