Correlation Between Grand Ocean and Chang Type
Can any of the company-specific risk be diversified away by investing in both Grand Ocean and Chang Type 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 Grand Ocean and Chang Type into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Grand Ocean Retail and Chang Type Industrial, you can compare the effects of market volatilities on Grand Ocean and Chang Type 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 Grand Ocean with a short position of Chang Type. Check out your portfolio center. Please also check ongoing floating volatility patterns of Grand Ocean and Chang Type.
Diversification Opportunities for Grand Ocean and Chang Type
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between Grand and Chang is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding Grand Ocean Retail and Chang Type Industrial in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chang Type Industrial and Grand Ocean 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 Grand Ocean Retail are associated (or correlated) with Chang Type. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chang Type Industrial has no effect on the direction of Grand Ocean i.e., Grand Ocean and Chang Type go up and down completely randomly.
Pair Corralation between Grand Ocean and Chang Type
Assuming the 90 days trading horizon Grand Ocean Retail is expected to under-perform the Chang Type. In addition to that, Grand Ocean is 1.06 times more volatile than Chang Type Industrial. It trades about -0.25 of its total potential returns per unit of risk. Chang Type Industrial is currently generating about -0.1 per unit of volatility. If you would invest 2,740 in Chang Type Industrial on October 25, 2024 and sell it today you would lose (125.00) from holding Chang Type Industrial or give up 4.56% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
Grand Ocean Retail vs. Chang Type Industrial
Performance |
| Timeline |
| Grand Ocean Retail |
| Chang Type Industrial |
Grand Ocean and Chang Type Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Grand Ocean and Chang Type
The main advantage of trading using opposite Grand Ocean and Chang Type positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Grand Ocean position performs unexpectedly, Chang Type 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 Chang Type will offset losses from the drop in Chang Type's long position.| Grand Ocean vs. Tong Yang Industry | Grand Ocean vs. Ta Yih Industrial | Grand Ocean vs. Basso Industry Corp | Grand Ocean vs. China Motor Corp |
| Chang Type vs. Pacific Construction Co | Chang Type vs. WiseChip Semiconductor | Chang Type vs. ReaLy Development Construction | Chang Type vs. Mospec Semiconductor 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 Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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