Correlation Between China Pacific and ARDAGH METAL
Can any of the company-specific risk be diversified away by investing in both China Pacific and ARDAGH METAL 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 China Pacific and ARDAGH METAL into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Pacific Insurance and ARDAGH METAL PACDL 0001, you can compare the effects of market volatilities on China Pacific and ARDAGH METAL 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 China Pacific with a short position of ARDAGH METAL. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Pacific and ARDAGH METAL.
Diversification Opportunities for China Pacific and ARDAGH METAL
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and ARDAGH is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Pacific Insurance and ARDAGH METAL PACDL 0001 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ARDAGH METAL PACDL and China Pacific 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 China Pacific Insurance are associated (or correlated) with ARDAGH METAL. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ARDAGH METAL PACDL has no effect on the direction of China Pacific i.e., China Pacific and ARDAGH METAL go up and down completely randomly.
Pair Corralation between China Pacific and ARDAGH METAL
If you would invest (100.00) in China Pacific Insurance on October 25, 2024 and sell it today you would earn a total of 100.00 from holding China Pacific Insurance or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Pacific Insurance vs. ARDAGH METAL PACDL 0001
Performance |
| Timeline |
| China Pacific Insurance |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| ARDAGH METAL PACDL |
China Pacific and ARDAGH METAL Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Pacific and ARDAGH METAL
The main advantage of trading using opposite China Pacific and ARDAGH METAL positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Pacific position performs unexpectedly, ARDAGH METAL 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 ARDAGH METAL will offset losses from the drop in ARDAGH METAL's long position.| China Pacific vs. Nufarm Limited | China Pacific vs. Chengdu PUTIAN Telecommunications | China Pacific vs. COMBA TELECOM SYST | China Pacific vs. Entravision Communications |
| ARDAGH METAL vs. ELL ENVIRONHLDGS HD 0001 | ARDAGH METAL vs. GRUPO CARSO A1 | ARDAGH METAL vs. INTER CARS SA | ARDAGH METAL vs. CarsalesCom |
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 Transaction History module to view history of all your transactions and understand their impact on performance.
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