Correlation Between Automatic Data and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Automatic Data and Chuangs China 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 Automatic Data and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Automatic Data Processing and Chuangs China Investments, you can compare the effects of market volatilities on Automatic Data and Chuangs China 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 Automatic Data with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Automatic Data and Chuangs China.
Diversification Opportunities for Automatic Data and Chuangs China
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Automatic and Chuangs is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Automatic Data Processing and Chuangs China Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Chuangs China Investments and Automatic Data 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 Automatic Data Processing are associated (or correlated) with Chuangs China. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Chuangs China Investments has no effect on the direction of Automatic Data i.e., Automatic Data and Chuangs China go up and down completely randomly.
Pair Corralation between Automatic Data and Chuangs China
Assuming the 90 days horizon Automatic Data Processing is expected to generate 1.0 times more return on investment than Chuangs China. However, Automatic Data is 1.0 times more volatile than Chuangs China Investments. It trades about 0.38 of its potential returns per unit of risk. Chuangs China Investments is currently generating about 0.01 per unit of risk. If you would invest 24,400 in Automatic Data Processing on August 29, 2024 and sell it today you would earn a total of 4,635 from holding Automatic Data Processing or generate 19.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 97.67% |
| Values | Daily Returns |
Automatic Data Processing vs. Chuangs China Investments
Performance |
| Timeline |
| Automatic Data Processing |
| Chuangs China Investments |
Automatic Data and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Automatic Data and Chuangs China
The main advantage of trading using opposite Automatic Data and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Automatic Data position performs unexpectedly, Chuangs China 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 Chuangs China will offset losses from the drop in Chuangs China's long position.| Automatic Data vs. Superior Plus Corp | Automatic Data vs. SIVERS SEMICONDUCTORS AB | Automatic Data vs. Talanx AG | Automatic Data vs. 2G ENERGY |
| Chuangs China vs. Playtech plc | Chuangs China vs. KOOL2PLAY SA ZY | Chuangs China vs. PLAYSTUDIOS A DL 0001 | Chuangs China vs. ANTA SPORTS PRODUCT |
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 CEOs Directory module to screen CEOs from public companies around the world.
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