Correlation Between Tidehold Development and Ching Feng
Can any of the company-specific risk be diversified away by investing in both Tidehold Development and Ching Feng 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 Tidehold Development and Ching Feng into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Tidehold Development Co and Ching Feng Home, you can compare the effects of market volatilities on Tidehold Development and Ching Feng 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 Tidehold Development with a short position of Ching Feng. Check out your portfolio center. Please also check ongoing floating volatility patterns of Tidehold Development and Ching Feng.
Diversification Opportunities for Tidehold Development and Ching Feng
-0.32 | Correlation Coefficient |
Very good diversification
The 3 months correlation between Tidehold and Ching is -0.32. Overlapping area represents the amount of risk that can be diversified away by holding Tidehold Development Co and Ching Feng Home in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ching Feng Home and Tidehold Development 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 Tidehold Development Co are associated (or correlated) with Ching Feng. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ching Feng Home has no effect on the direction of Tidehold Development i.e., Tidehold Development and Ching Feng go up and down completely randomly.
Pair Corralation between Tidehold Development and Ching Feng
Assuming the 90 days trading horizon Tidehold Development Co is expected to generate 0.66 times more return on investment than Ching Feng. However, Tidehold Development Co is 1.52 times less risky than Ching Feng. It trades about -0.05 of its potential returns per unit of risk. Ching Feng Home is currently generating about -0.14 per unit of risk. If you would invest 1,710 in Tidehold Development Co on September 1, 2024 and sell it today you would lose (35.00) from holding Tidehold Development Co or give up 2.05% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 95.65% |
| Values | Daily Returns |
Tidehold Development Co vs. Ching Feng Home
Performance |
| Timeline |
| Tidehold Development |
| Ching Feng Home |
Tidehold Development and Ching Feng Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Tidehold Development and Ching Feng
The main advantage of trading using opposite Tidehold Development and Ching Feng positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Tidehold Development position performs unexpectedly, Ching Feng 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 Ching Feng will offset losses from the drop in Ching Feng's long position.| Tidehold Development vs. Chaintech Technology Corp | Tidehold Development vs. AVerMedia Technologies | Tidehold Development vs. Avision | Tidehold Development vs. Clevo Co |
| Ching Feng vs. Chaintech Technology Corp | Ching Feng vs. AVerMedia Technologies | Ching Feng vs. Avision | Ching Feng vs. Clevo Co |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
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