Correlation Between CK HUTCHISON and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both CK HUTCHISON and TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN GAMING, you can compare the effects of market volatilities on CK HUTCHISON and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK HUTCHISON and TSOGO SUN.
Diversification Opportunities for CK HUTCHISON and TSOGO SUN
0.22 | Correlation Coefficient |
Modest diversification
The 3 months correlation between 2CKA and TSOGO is 0.22. Overlapping area represents the amount of risk that can be diversified away by holding CK HUTCHISON HLDGS and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of CK HUTCHISON i.e., CK HUTCHISON and TSOGO SUN go up and down completely randomly.
Pair Corralation between CK HUTCHISON and TSOGO SUN
Assuming the 90 days trading horizon CK HUTCHISON is expected to generate 3.73 times less return on investment than TSOGO SUN. But when comparing it to its historical volatility, CK HUTCHISON HLDGS is 2.22 times less risky than TSOGO SUN. It trades about 0.03 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about 0.05 of returns per unit of risk over similar time horizon. If you would invest 30.00 in TSOGO SUN GAMING on September 12, 2024 and sell it today you would earn a total of 25.00 from holding TSOGO SUN GAMING or generate 83.33% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK HUTCHISON HLDGS vs. TSOGO SUN GAMING
Performance |
| Timeline |
| CK HUTCHISON HLDGS |
| TSOGO SUN GAMING |
CK HUTCHISON and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK HUTCHISON and TSOGO SUN
The main advantage of trading using opposite CK HUTCHISON and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK HUTCHISON position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.| CK HUTCHISON vs. TSOGO SUN GAMING | CK HUTCHISON vs. Media and Games | CK HUTCHISON vs. GAMESTOP | CK HUTCHISON vs. Boyd Gaming |
| TSOGO SUN vs. Sands China | TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA |
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 Equity Valuation module to check real value of public entities based on technical and fundamental data.
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