Correlation Between CK HUTCHISON and Marubeni
Can any of the company-specific risk be diversified away by investing in both CK HUTCHISON and Marubeni 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 Marubeni 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 Marubeni, you can compare the effects of market volatilities on CK HUTCHISON and Marubeni 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 Marubeni. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK HUTCHISON and Marubeni.
Diversification Opportunities for CK HUTCHISON and Marubeni
-0.14 | Correlation Coefficient |
Good diversification
The 3 months correlation between 2CKA and Marubeni is -0.14. Overlapping area represents the amount of risk that can be diversified away by holding CK HUTCHISON HLDGS and Marubeni in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Marubeni 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 Marubeni. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Marubeni has no effect on the direction of CK HUTCHISON i.e., CK HUTCHISON and Marubeni go up and down completely randomly.
Pair Corralation between CK HUTCHISON and Marubeni
Assuming the 90 days trading horizon CK HUTCHISON HLDGS is expected to under-perform the Marubeni. But the stock apears to be less risky and, when comparing its historical volatility, CK HUTCHISON HLDGS is 1.78 times less risky than Marubeni. The stock trades about -0.39 of its potential returns per unit of risk. The Marubeni is currently generating about -0.08 of returns per unit of risk over similar time horizon. If you would invest 1,465 in Marubeni on November 4, 2024 and sell it today you would lose (35.00) from holding Marubeni or give up 2.39% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK HUTCHISON HLDGS vs. Marubeni
Performance |
| Timeline |
| CK HUTCHISON HLDGS |
| Marubeni |
CK HUTCHISON and Marubeni Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK HUTCHISON and Marubeni
The main advantage of trading using opposite CK HUTCHISON and Marubeni positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK HUTCHISON position performs unexpectedly, Marubeni 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 Marubeni will offset losses from the drop in Marubeni'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 |
| Marubeni vs. UPDATE SOFTWARE | Marubeni vs. Align Technology | Marubeni vs. DXC Technology Co | Marubeni vs. ScanSource |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
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