Correlation Between CVR Medical and China Resources
Can any of the company-specific risk be diversified away by investing in both CVR Medical and China Resources 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 CVR Medical and China Resources into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CVR Medical Corp and China Resources Beer, you can compare the effects of market volatilities on CVR Medical and China Resources 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 CVR Medical with a short position of China Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and China Resources.
Diversification Opportunities for CVR Medical and China Resources
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and China is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp and China Resources Beer in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources Beer and CVR Medical 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 CVR Medical Corp are associated (or correlated) with China Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Beer has no effect on the direction of CVR Medical i.e., CVR Medical and China Resources go up and down completely randomly.
Pair Corralation between CVR Medical and China Resources
If you would invest 284.00 in China Resources Beer on November 7, 2024 and sell it today you would earn a total of 4.00 from holding China Resources Beer or generate 1.41% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CVR Medical Corp vs. China Resources Beer
Performance |
| Timeline |
| CVR Medical Corp |
| China Resources Beer |
CVR Medical and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Medical and China Resources
The main advantage of trading using opposite CVR Medical and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical position performs unexpectedly, China Resources 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 Resources will offset losses from the drop in China Resources' long position.| CVR Medical vs. LPKF Laser Electronics | CVR Medical vs. AOI Electronics Co | CVR Medical vs. Richardson Electronics | CVR Medical vs. TT Electronics PLC |
| China Resources vs. CARDINAL HEALTH | China Resources vs. Mount Gibson Iron | China Resources vs. TOMBADOR IRON LTD | China Resources vs. EPSILON HEALTHCARE LTD |
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 Money Managers module to screen money managers from public funds and ETFs managed around the world.
Other Complementary Tools
| Stock Screener Find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook. | |
| Sync Your Broker Sync your existing holdings, watchlists, positions or portfolios from thousands of online brokerage services, banks, investment account aggregators and robo-advisors. | |
| Funds Screener Find actively-traded funds from around the world traded on over 30 global exchanges | |
| Global Correlations Find global opportunities by holding instruments from different markets | |
| Equity Analysis Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities |