Correlation Between Brinker International and Chuangs China
Can any of the company-specific risk be diversified away by investing in both Brinker International 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 Brinker International and Chuangs China into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Brinker International and Chuangs China Investments, you can compare the effects of market volatilities on Brinker International 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 Brinker International with a short position of Chuangs China. Check out your portfolio center. Please also check ongoing floating volatility patterns of Brinker International and Chuangs China.
Diversification Opportunities for Brinker International and Chuangs China
-0.11 | Correlation Coefficient |
Good diversification
The 3 months correlation between Brinker and Chuangs is -0.11. Overlapping area represents the amount of risk that can be diversified away by holding Brinker International 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 Brinker International 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 Brinker International 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 Brinker International i.e., Brinker International and Chuangs China go up and down completely randomly.
Pair Corralation between Brinker International and Chuangs China
If you would invest 10,900 in Brinker International on September 16, 2024 and sell it today you would earn a total of 1,200 from holding Brinker International or generate 11.01% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Brinker International vs. Chuangs China Investments
Performance |
| Timeline |
| Brinker International |
| Chuangs China Investments |
Brinker International and Chuangs China Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Brinker International and Chuangs China
The main advantage of trading using opposite Brinker International and Chuangs China positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Brinker International 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.| Brinker International vs. Chuangs China Investments | Brinker International vs. Nufarm Limited | Brinker International vs. Federal Agricultural Mortgage | Brinker International vs. Virtus Investment Partners |
| Chuangs China vs. Superior Plus Corp | Chuangs China vs. SIVERS SEMICONDUCTORS AB | Chuangs China vs. Reliance Steel Aluminum | Chuangs China vs. CHINA HUARONG ENERHD 50 |
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 Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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