Correlation Between China Pacific and TSOGO SUN
Can any of the company-specific risk be diversified away by investing in both China Pacific and TSOGO SUN 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 TSOGO SUN 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 TSOGO SUN GAMING, you can compare the effects of market volatilities on China Pacific and TSOGO SUN 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 TSOGO SUN. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Pacific and TSOGO SUN.
Diversification Opportunities for China Pacific and TSOGO SUN
0.11 | Correlation Coefficient |
Average diversification
The 3 months correlation between China and TSOGO is 0.11. Overlapping area represents the amount of risk that can be diversified away by holding China Pacific Insurance and TSOGO SUN GAMING in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on TSOGO SUN GAMING 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 TSOGO SUN. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of TSOGO SUN GAMING has no effect on the direction of China Pacific i.e., China Pacific and TSOGO SUN go up and down completely randomly.
Pair Corralation between China Pacific and TSOGO SUN
Assuming the 90 days horizon China Pacific Insurance is expected to generate 1.06 times more return on investment than TSOGO SUN. However, China Pacific is 1.06 times more volatile than TSOGO SUN GAMING. It trades about 0.09 of its potential returns per unit of risk. TSOGO SUN GAMING is currently generating about 0.06 per unit of risk. If you would invest 108.00 in China Pacific Insurance on September 14, 2024 and sell it today you would earn a total of 196.00 from holding China Pacific Insurance or generate 181.48% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Pacific Insurance vs. TSOGO SUN GAMING
Performance |
| Timeline |
| China Pacific Insurance |
| TSOGO SUN GAMING |
China Pacific and TSOGO SUN Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Pacific and TSOGO SUN
The main advantage of trading using opposite China Pacific and TSOGO SUN positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Pacific position performs unexpectedly, TSOGO SUN 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 TSOGO SUN will offset losses from the drop in TSOGO SUN's long position.| China Pacific vs. TSOGO SUN GAMING | China Pacific vs. SOFI TECHNOLOGIES | China Pacific vs. THORNEY TECHS LTD | China Pacific vs. Media and Games |
| TSOGO SUN vs. Superior Plus Corp | TSOGO SUN vs. SIVERS SEMICONDUCTORS AB | TSOGO SUN vs. Norsk Hydro ASA | TSOGO SUN vs. Reliance Steel Aluminum |
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 Rebalancing module to analyze risk-adjusted returns against different time horizons to find asset-allocation targets.
Other Complementary Tools
| Fundamental Analysis View fundamental data based on most recent published financial statements | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data |