Correlation Between Chiba Bank and CHINA TONTINE
Can any of the company-specific risk be diversified away by investing in both Chiba Bank and CHINA TONTINE 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 Chiba Bank and CHINA TONTINE into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chiba Bank and CHINA TONTINE WINES, you can compare the effects of market volatilities on Chiba Bank and CHINA TONTINE 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 Chiba Bank with a short position of CHINA TONTINE. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chiba Bank and CHINA TONTINE.
Diversification Opportunities for Chiba Bank and CHINA TONTINE
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Chiba and CHINA is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Chiba Bank and CHINA TONTINE WINES in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CHINA TONTINE WINES and Chiba Bank 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 Chiba Bank are associated (or correlated) with CHINA TONTINE. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CHINA TONTINE WINES has no effect on the direction of Chiba Bank i.e., Chiba Bank and CHINA TONTINE go up and down completely randomly.
Pair Corralation between Chiba Bank and CHINA TONTINE
If you would invest 725.00 in Chiba Bank on September 14, 2024 and sell it today you would earn a total of 70.00 from holding Chiba Bank or generate 9.66% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chiba Bank vs. CHINA TONTINE WINES
Performance |
| Timeline |
| Chiba Bank |
| CHINA TONTINE WINES |
Chiba Bank and CHINA TONTINE Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chiba Bank and CHINA TONTINE
The main advantage of trading using opposite Chiba Bank and CHINA TONTINE positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chiba Bank position performs unexpectedly, CHINA TONTINE 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 CHINA TONTINE will offset losses from the drop in CHINA TONTINE's long position.The idea behind Chiba Bank and CHINA TONTINE WINES pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.| CHINA TONTINE vs. Chiba Bank | CHINA TONTINE vs. PKSHA TECHNOLOGY INC | CHINA TONTINE vs. TFS FINANCIAL | CHINA TONTINE vs. SMA Solar Technology |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Headlines Timeline Stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity | |
| Pair Correlation Compare performance and examine fundamental relationship between any two equity instruments | |
| Content Syndication Quickly integrate customizable finance content to your own investment portal | |
| Pattern Recognition Use different Pattern Recognition models to time the market across multiple global exchanges | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios |