Correlation Between COPLAND ROAD and CHINA EAST
Can any of the company-specific risk be diversified away by investing in both COPLAND ROAD and CHINA EAST 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 COPLAND ROAD and CHINA EAST into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between COPLAND ROAD CAPITAL and CHINA EAST ED, you can compare the effects of market volatilities on COPLAND ROAD and CHINA EAST 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 COPLAND ROAD with a short position of CHINA EAST. Check out your portfolio center. Please also check ongoing floating volatility patterns of COPLAND ROAD and CHINA EAST.
Diversification Opportunities for COPLAND ROAD and CHINA EAST
-0.51 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between COPLAND and CHINA is -0.51. Overlapping area represents the amount of risk that can be diversified away by holding COPLAND ROAD CAPITAL and CHINA EAST ED in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA EAST ED and COPLAND ROAD 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 COPLAND ROAD CAPITAL are associated (or correlated) with CHINA EAST. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA EAST ED has no effect on the direction of COPLAND ROAD i.e., COPLAND ROAD and CHINA EAST go up and down completely randomly.
Pair Corralation between COPLAND ROAD and CHINA EAST
Assuming the 90 days horizon COPLAND ROAD CAPITAL is expected to generate 3.08 times more return on investment than CHINA EAST. However, COPLAND ROAD is 3.08 times more volatile than CHINA EAST ED. It trades about 0.09 of its potential returns per unit of risk. CHINA EAST ED is currently generating about -0.45 per unit of risk. If you would invest 4,485 in COPLAND ROAD CAPITAL on October 13, 2024 and sell it today you would earn a total of 220.00 from holding COPLAND ROAD CAPITAL or generate 4.91% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
COPLAND ROAD CAPITAL vs. CHINA EAST ED
Performance |
| Timeline |
| COPLAND ROAD CAPITAL |
| CHINA EAST ED |
COPLAND ROAD and CHINA EAST Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with COPLAND ROAD and CHINA EAST
The main advantage of trading using opposite COPLAND ROAD and CHINA EAST positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if COPLAND ROAD position performs unexpectedly, CHINA EAST 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 CHINA EAST will offset losses from the drop in CHINA EAST's long position.| COPLAND ROAD vs. DETALION GAMES SA | COPLAND ROAD vs. GigaMedia | COPLAND ROAD vs. Media and Games | COPLAND ROAD vs. CONTAGIOUS GAMING INC |
| CHINA EAST vs. INDO RAMA SYNTHETIC | CHINA EAST vs. Kingdee International Software | CHINA EAST vs. Soken Chemical Engineering | CHINA EAST vs. Siamgas And Petrochemicals |
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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.
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