Correlation Between China Tontine and Whitbread Plc
Can any of the company-specific risk be diversified away by investing in both China Tontine and Whitbread Plc 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 Whitbread Plc 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 Whitbread plc, you can compare the effects of market volatilities on China Tontine and Whitbread Plc 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 Whitbread Plc. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Tontine and Whitbread Plc.
Diversification Opportunities for China Tontine and Whitbread Plc
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Whitbread is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Tontine Wines and Whitbread plc in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Whitbread plc 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 Whitbread Plc. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Whitbread plc has no effect on the direction of China Tontine i.e., China Tontine and Whitbread Plc go up and down completely randomly.
Pair Corralation between China Tontine and Whitbread Plc
If you would invest 7.10 in China Tontine Wines on October 11, 2024 and sell it today you would earn a total of 0.00 from holding China Tontine Wines or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 95.24% |
| Values | Daily Returns |
China Tontine Wines vs. Whitbread plc
Performance |
| Timeline |
| China Tontine Wines |
| Whitbread plc |
China Tontine and Whitbread Plc Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Tontine and Whitbread Plc
The main advantage of trading using opposite China Tontine and Whitbread Plc positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Tontine position performs unexpectedly, Whitbread Plc 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 Whitbread Plc will offset losses from the drop in Whitbread Plc's long position.| China Tontine vs. Ryanair Holdings PLC | China Tontine vs. WEBTOON Entertainment Common | China Tontine vs. Lincoln Educational Services | China Tontine vs. Broadleaf Co |
| Whitbread Plc vs. Keurig Dr Pepper | Whitbread Plc vs. China Tontine Wines | Whitbread Plc vs. Naked Wines plc | Whitbread Plc vs. Galaxy Gaming |
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 Stock Screener module to find equities using a custom stock filter or screen asymmetry in trading patterns, price, volume, or investment outlook..
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