Correlation Between CK HUTCHISON and CITIC
Can any of the company-specific risk be diversified away by investing in both CK HUTCHISON and CITIC 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 CITIC 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 CITIC Limited, you can compare the effects of market volatilities on CK HUTCHISON and CITIC 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 CITIC. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK HUTCHISON and CITIC.
Diversification Opportunities for CK HUTCHISON and CITIC
0.08 | Correlation Coefficient |
Significant diversification
The 3 months correlation between 2CKA and CITIC is 0.08. Overlapping area represents the amount of risk that can be diversified away by holding CK HUTCHISON HLDGS and CITIC Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CITIC Limited 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 CITIC. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CITIC Limited has no effect on the direction of CK HUTCHISON i.e., CK HUTCHISON and CITIC go up and down completely randomly.
Pair Corralation between CK HUTCHISON and CITIC
Assuming the 90 days trading horizon CK HUTCHISON HLDGS is expected to under-perform the CITIC. But the stock apears to be less risky and, when comparing its historical volatility, CK HUTCHISON HLDGS is 2.73 times less risky than CITIC. The stock trades about -0.39 of its potential returns per unit of risk. The CITIC Limited is currently generating about 0.01 of returns per unit of risk over similar time horizon. If you would invest 106.00 in CITIC Limited on November 4, 2024 and sell it today you would earn a total of 0.00 from holding CITIC Limited or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK HUTCHISON HLDGS vs. CITIC Limited
Performance |
| Timeline |
| CK HUTCHISON HLDGS |
| CITIC Limited |
CK HUTCHISON and CITIC Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK HUTCHISON and CITIC
The main advantage of trading using opposite CK HUTCHISON and CITIC positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK HUTCHISON position performs unexpectedly, CITIC 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 CITIC will offset losses from the drop in CITIC's long position.| CK HUTCHISON vs. DENTSPLY SIRONA | CK HUTCHISON vs. FAST RETAIL ADR | CK HUTCHISON vs. COSTCO WHOLESALE CDR | CK HUTCHISON vs. Costco Wholesale Corp |
| CITIC vs. Kingdee International Software | CITIC vs. Cognizant Technology Solutions | CITIC vs. Casio Computer CoLtd | CITIC vs. CVR Medical 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 Piotroski F Score module to get Piotroski F Score based on the binary analysis strategy of nine different fundamentals.
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