Correlation Between Berli Jucker and CK Hutchison
Can any of the company-specific risk be diversified away by investing in both Berli Jucker and CK Hutchison 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 Berli Jucker and CK Hutchison into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Berli Jucker PCL and CK Hutchison Holdings, you can compare the effects of market volatilities on Berli Jucker and CK Hutchison 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 Berli Jucker with a short position of CK Hutchison. Check out your portfolio center. Please also check ongoing floating volatility patterns of Berli Jucker and CK Hutchison.
Diversification Opportunities for Berli Jucker and CK Hutchison
0.09 | Correlation Coefficient |
Significant diversification
The 3 months correlation between Berli and CKHUY is 0.09. Overlapping area represents the amount of risk that can be diversified away by holding Berli Jucker PCL and CK Hutchison Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CK Hutchison Holdings and Berli Jucker 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 Berli Jucker PCL are associated (or correlated) with CK Hutchison. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CK Hutchison Holdings has no effect on the direction of Berli Jucker i.e., Berli Jucker and CK Hutchison go up and down completely randomly.
Pair Corralation between Berli Jucker and CK Hutchison
Assuming the 90 days horizon Berli Jucker PCL is expected to under-perform the CK Hutchison. In addition to that, Berli Jucker is 1.25 times more volatile than CK Hutchison Holdings. It trades about -0.04 of its total potential returns per unit of risk. CK Hutchison Holdings is currently generating about 0.0 per unit of volatility. If you would invest 540.00 in CK Hutchison Holdings on November 7, 2024 and sell it today you would lose (41.00) from holding CK Hutchison Holdings or give up 7.59% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 77.69% |
| Values | Daily Returns |
Berli Jucker PCL vs. CK Hutchison Holdings
Performance |
| Timeline |
| Berli Jucker PCL |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| CK Hutchison Holdings |
Berli Jucker and CK Hutchison Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Berli Jucker and CK Hutchison
The main advantage of trading using opposite Berli Jucker and CK Hutchison positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Berli Jucker position performs unexpectedly, CK Hutchison 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 CK Hutchison will offset losses from the drop in CK Hutchison's long position.| Berli Jucker vs. Teijin | Berli Jucker vs. Ayala Corp ADR | Berli Jucker vs. CK Hutchison Holdings | Berli Jucker vs. 1847 Holdings LLC |
| CK Hutchison vs. Swire Pacific | CK Hutchison vs. Marubeni | CK Hutchison vs. Sumitomo Corp ADR | CK Hutchison vs. Marubeni Corp ADR |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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