Correlation Between Cgrowth Capital and THK Co
Can any of the company-specific risk be diversified away by investing in both Cgrowth Capital and THK Co 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 Cgrowth Capital and THK Co into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Cgrowth Capital and THK Co Ltd, you can compare the effects of market volatilities on Cgrowth Capital and THK Co 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 Cgrowth Capital with a short position of THK Co. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cgrowth Capital and THK Co.
Diversification Opportunities for Cgrowth Capital and THK Co
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Cgrowth and THK is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Cgrowth Capital and THK Co Ltd in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on THK Co and Cgrowth Capital 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 Cgrowth Capital are associated (or correlated) with THK Co. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of THK Co has no effect on the direction of Cgrowth Capital i.e., Cgrowth Capital and THK Co go up and down completely randomly.
Pair Corralation between Cgrowth Capital and THK Co
Given the investment horizon of 90 days Cgrowth Capital is expected to generate 2.58 times more return on investment than THK Co. However, Cgrowth Capital is 2.58 times more volatile than THK Co Ltd. It trades about 0.32 of its potential returns per unit of risk. THK Co Ltd is currently generating about 0.39 per unit of risk. If you would invest 0.20 in Cgrowth Capital on September 3, 2024 and sell it today you would earn a total of 0.20 from holding Cgrowth Capital or generate 100.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Cgrowth Capital vs. THK Co Ltd
Performance |
| Timeline |
| Cgrowth Capital |
| THK Co |
Cgrowth Capital and THK Co Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Cgrowth Capital and THK Co
The main advantage of trading using opposite Cgrowth Capital and THK Co positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cgrowth Capital position performs unexpectedly, THK Co 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 THK Co will offset losses from the drop in THK Co's long position.| Cgrowth Capital vs. Western Asset Global | Cgrowth Capital vs. Invesco Trust For | Cgrowth Capital vs. Logan Ridge Finance | Cgrowth Capital vs. Invesco Advantage MIT |
| THK Co vs. Dear Cashmere Holding | THK Co vs. Goff Corp | THK Co vs. Wialan Technologies | THK Co vs. Cgrowth Capital |
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 Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.
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