Correlation Between CVR Medical and HK Electric
Can any of the company-specific risk be diversified away by investing in both CVR Medical and HK Electric 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 HK Electric 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 HK Electric Investments, you can compare the effects of market volatilities on CVR Medical and HK Electric 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 HK Electric. Check out your portfolio center. Please also check ongoing floating volatility patterns of CVR Medical and HK Electric.
Diversification Opportunities for CVR Medical and HK Electric
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between CVR and HKT is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding CVR Medical Corp and HK Electric Investments in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HK Electric Investments 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 HK Electric. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HK Electric Investments has no effect on the direction of CVR Medical i.e., CVR Medical and HK Electric go up and down completely randomly.
Pair Corralation between CVR Medical and HK Electric
If you would invest 64.00 in HK Electric Investments on November 27, 2024 and sell it today you would earn a total of 1.00 from holding HK Electric Investments or generate 1.56% 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. HK Electric Investments
Performance |
| Timeline |
| CVR Medical Corp |
| HK Electric Investments |
CVR Medical and HK Electric Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CVR Medical and HK Electric
The main advantage of trading using opposite CVR Medical and HK Electric positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CVR Medical position performs unexpectedly, HK Electric 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 HK Electric will offset losses from the drop in HK Electric's long position.| CVR Medical vs. Tradeweb Markets | CVR Medical vs. Prosiebensat 1 Media | CVR Medical vs. Universal Entertainment | CVR Medical vs. FLOW TRADERS LTD |
| HK Electric vs. Transport International Holdings | HK Electric vs. COLUMBIA SPORTSWEAR | HK Electric vs. SOEDER SPORTFISKE AB | HK Electric vs. Firan Technology Group |
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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