Correlation Between CVC Technologies and An Shin
Can any of the company-specific risk be diversified away by investing in both CVC Technologies and An Shin 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 CVC Technologies and An Shin into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVC Technologies and An Shin Food Services, you can compare the effects of market volatilities on CVC Technologies and An Shin 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 CVC Technologies with a short position of An Shin. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVC Technologies and An Shin.
Diversification Opportunities for CVC Technologies and An Shin
-0.46 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CVC and 1259 is -0.46. Overlapping area represents the amount of risk that can be diversified away by holding CVC Technologies and An Shin Food Services in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on An Shin Food and CVC Technologies 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 CVC Technologies are associated (or correlated) with An Shin. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of An Shin Food has no effect on the direction of CVC Technologies i.e., CVC Technologies and An Shin go up and down completely randomly.
Pair Corralation between CVC Technologies and An Shin
Assuming the 90 days trading horizon CVC Technologies is expected to generate 2.5 times more return on investment than An Shin. However, CVC Technologies is 2.5 times more volatile than An Shin Food Services. It trades about -0.01 of its potential returns per unit of risk. An Shin Food Services is currently generating about -0.11 per unit of risk. If you would invest 2,195 in CVC Technologies on October 29, 2024 and sell it today you would lose (10.00) from holding CVC Technologies or give up 0.46% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVC Technologies vs. An Shin Food Services
Performance |
| Timeline |
| CVC Technologies |
| An Shin Food |
CVC Technologies and An Shin Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVC Technologies and An Shin
The main advantage of trading using opposite CVC Technologies and An Shin positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVC Technologies position performs unexpectedly, An Shin 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 An Shin will offset losses from the drop in An Shin's long position.| CVC Technologies vs. Wha Yu Industrial | CVC Technologies vs. International CSRC Investment | CVC Technologies vs. Excelsior Medical Co | CVC Technologies vs. SuperAlloy Industrial Co, |
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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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
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