Correlation Between Chong Hong and Coremax Corp
Can any of the company-specific risk be diversified away by investing in both Chong Hong and Coremax Corp 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 Chong Hong and Coremax Corp into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chong Hong Construction and Coremax Corp, you can compare the effects of market volatilities on Chong Hong and Coremax Corp 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 Chong Hong with a short position of Coremax Corp. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chong Hong and Coremax Corp.
Diversification Opportunities for Chong Hong and Coremax Corp
-0.25 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Chong and Coremax is -0.25. Overlapping area represents the amount of risk that can be diversified away by holding Chong Hong Construction and Coremax Corp in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Coremax Corp and Chong Hong 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 Chong Hong Construction are associated (or correlated) with Coremax Corp. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Coremax Corp has no effect on the direction of Chong Hong i.e., Chong Hong and Coremax Corp go up and down completely randomly.
Pair Corralation between Chong Hong and Coremax Corp
Assuming the 90 days trading horizon Chong Hong Construction is expected to generate 1.33 times more return on investment than Coremax Corp. However, Chong Hong is 1.33 times more volatile than Coremax Corp. It trades about 0.05 of its potential returns per unit of risk. Coremax Corp is currently generating about 0.07 per unit of risk. If you would invest 8,750 in Chong Hong Construction on September 1, 2024 and sell it today you would earn a total of 200.00 from holding Chong Hong Construction or generate 2.29% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Chong Hong Construction vs. Coremax Corp
Performance |
| Timeline |
| Chong Hong Construction |
| Coremax Corp |
Chong Hong and Coremax Corp Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chong Hong and Coremax Corp
The main advantage of trading using opposite Chong Hong and Coremax Corp positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chong Hong position performs unexpectedly, Coremax Corp 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 Coremax Corp will offset losses from the drop in Coremax Corp's long position.| Chong Hong vs. Ruentex Development Co | Chong Hong vs. CTCI Corp | Chong Hong vs. Information Technology Total | Chong Hong vs. Ennoconn Corp |
| Coremax Corp vs. Mechema Chemicals Int | Coremax Corp vs. China Steel Chemical | Coremax Corp vs. Delta Electronics | Coremax Corp vs. Hota Industrial Mfg |
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 Portfolio Suggestion module to get suggestions outside of your existing asset allocation including your own model portfolios.
Other Complementary Tools
| Commodity Directory Find actively traded commodities issued by global exchanges | |
| Risk-Return Analysis View associations between returns expected from investment and the risk you assume | |
| Theme Ratings Determine theme ratings based on digital equity recommendations. Macroaxis theme ratings are based on combination of fundamental analysis and risk-adjusted market performance | |
| Equity Forecasting Use basic forecasting models to generate price predictions and determine price momentum | |
| Fundamental Analysis View fundamental data based on most recent published financial statements |