Correlation Between China Tontine and Rose Hill
Can any of the company-specific risk be diversified away by investing in both China Tontine and Rose Hill 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 Tontine and Rose Hill into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Tontine Wines and Rose Hill Acquisition, you can compare the effects of market volatilities on China Tontine and Rose Hill 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 Tontine with a short position of Rose Hill. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and Rose Hill.
Diversification Opportunities for China Tontine and Rose Hill
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Rose is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and Rose Hill Acquisition in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Rose Hill Acquisition and China Tontine 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 Tontine Wines are associated (or correlated) with Rose Hill. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Rose Hill Acquisition has no effect on the direction of China Tontine i.e., China Tontine and Rose Hill go up and down completely randomly.
Pair Corralation between China Tontine and Rose Hill
If you would invest (100.00) in Rose Hill Acquisition on September 1, 2024 and sell it today you would earn a total of 100.00 from holding Rose Hill Acquisition or generate -100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Tontine Wines vs. Rose Hill Acquisition
Performance |
| Timeline |
| China Tontine Wines |
| Rose Hill Acquisition |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Tontine and Rose Hill Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and Rose Hill
The main advantage of trading using opposite China Tontine and Rose Hill positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine position performs unexpectedly, Rose Hill 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 Rose Hill will offset losses from the drop in Rose Hill's long position.| China Tontine vs. BCE Inc | China Tontine vs. Fomento Economico Mexicano | China Tontine vs. Western Sierra Mining | China Tontine vs. Anheuser Busch Inbev |
| Rose Hill vs. Sun Life Financial | Rose Hill vs. Link Real Estate | Rose Hill vs. CT Real Estate | Rose Hill vs. Stepan Company |
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 Correlation Analysis module to reduce portfolio risk simply by holding instruments which are not perfectly correlated.
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