Correlation Between China Overseas and Agile Group
Can any of the company-specific risk be diversified away by investing in both China Overseas and Agile Group 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 China Overseas and Agile Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Overseas Land and Agile Group Holdings, you can compare the effects of market volatilities on China Overseas and Agile Group 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 China Overseas with a short position of Agile Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Overseas and Agile Group.
Diversification Opportunities for China Overseas and Agile Group
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between China and Agile is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding China Overseas Land and Agile Group Holdings in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Agile Group Holdings and China Overseas 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 China Overseas Land are associated (or correlated) with Agile Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Agile Group Holdings has no effect on the direction of China Overseas i.e., China Overseas and Agile Group go up and down completely randomly.
Pair Corralation between China Overseas and Agile Group
Assuming the 90 days horizon China Overseas is expected to generate 62.24 times less return on investment than Agile Group. But when comparing it to its historical volatility, China Overseas Land is 5.85 times less risky than Agile Group. It trades about 0.0 of its potential returns per unit of risk. Agile Group Holdings is currently generating about 0.03 of returns per unit of risk over similar time horizon. If you would invest 1,100 in Agile Group Holdings on September 1, 2024 and sell it today you would lose (610.00) from holding Agile Group Holdings or give up 55.45% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 98.92% |
| Values | Daily Returns |
China Overseas Land vs. Agile Group Holdings
Performance |
| Timeline |
| China Overseas Land |
| Agile Group Holdings |
China Overseas and Agile Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Overseas and Agile Group
The main advantage of trading using opposite China Overseas and Agile Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Overseas position performs unexpectedly, Agile Group 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 Agile Group will offset losses from the drop in Agile Group's long position.| China Overseas vs. Longfor Group Holdings | China Overseas vs. Sun Hung Kai | China Overseas vs. Country Garden Holdings | China Overseas vs. Sino Land Co |
| Agile Group vs. China Resources Land | Agile Group vs. Sun Hung Kai | Agile Group vs. China Overseas Land | Agile Group vs. EGRNF |
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.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Portfolio Holdings Check your current holdings and cash postion to detemine if your portfolio needs rebalancing | |
| Watchlist Optimization Optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm | |
| Portfolio Anywhere Track or share privately all of your investments from the convenience of any device |