Correlation Between China Tontine and ASHTEAD
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By analyzing existing cross correlation between China Tontine Wines and ASHTEAD CAP INC, you can compare the effects of market volatilities on China Tontine and ASHTEAD 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 ASHTEAD. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and ASHTEAD.
Diversification Opportunities for China Tontine and ASHTEAD
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and ASHTEAD is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and ASHTEAD CAP INC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ASHTEAD CAP INC 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 ASHTEAD. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ASHTEAD CAP INC has no effect on the direction of China Tontine i.e., China Tontine and ASHTEAD go up and down completely randomly.
Pair Corralation between China Tontine and ASHTEAD
Assuming the 90 days horizon China Tontine Wines is expected to generate 1.69 times more return on investment than ASHTEAD. However, China Tontine is 1.69 times more volatile than ASHTEAD CAP INC. It trades about 0.1 of its potential returns per unit of risk. ASHTEAD CAP INC is currently generating about 0.05 per unit of risk. If you would invest 0.20 in China Tontine Wines on September 2, 2024 and sell it today you would earn a total of 6.90 from holding China Tontine Wines or generate 3450.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 58.01% |
| Values | Daily Returns |
China Tontine Wines vs. ASHTEAD CAP INC
Performance |
| Timeline |
| China Tontine Wines |
| ASHTEAD CAP INC |
China Tontine and ASHTEAD Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and ASHTEAD
The main advantage of trading using opposite China Tontine and ASHTEAD positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine position performs unexpectedly, ASHTEAD 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 ASHTEAD will offset losses from the drop in ASHTEAD's long position.| China Tontine vs. Diageo PLC ADR | China Tontine vs. Pernod Ricard SA | China Tontine vs. Constellation Brands Class | China Tontine vs. Brown Forman |
| ASHTEAD vs. China Tontine Wines | ASHTEAD vs. GAMCO Global Gold | ASHTEAD vs. Fidus Investment Corp | ASHTEAD vs. PennantPark Floating Rate |
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 Portfolio Manager module to state of the art Portfolio Manager to monitor and improve performance of your invested capital.
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