Correlation Between China Galaxy and Creek Road
Can any of the company-specific risk be diversified away by investing in both China Galaxy and Creek Road 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 Galaxy and Creek Road into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Galaxy Securities and Creek Road Miners, you can compare the effects of market volatilities on China Galaxy and Creek Road 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 Galaxy with a short position of Creek Road. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Galaxy and Creek Road.
Diversification Opportunities for China Galaxy and Creek Road
0.9 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between China and Creek is 0.9. Overlapping area represents the amount of risk that can be diversified away by holding China Galaxy Securities and Creek Road Miners in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Creek Road Miners and China Galaxy 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 Galaxy Securities are associated (or correlated) with Creek Road. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Creek Road Miners has no effect on the direction of China Galaxy i.e., China Galaxy and Creek Road go up and down completely randomly.
Pair Corralation between China Galaxy and Creek Road
If you would invest 23.00 in Creek Road Miners on August 30, 2024 and sell it today you would earn a total of 0.00 from holding Creek Road Miners or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Galaxy Securities vs. Creek Road Miners
Performance |
| Timeline |
| China Galaxy Securities |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
| Creek Road Miners |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Very Weak
China Galaxy and Creek Road Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Galaxy and Creek Road
The main advantage of trading using opposite China Galaxy and Creek Road positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Galaxy position performs unexpectedly, Creek Road 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 Creek Road will offset losses from the drop in Creek Road's long position.| China Galaxy vs. Evercore Partners | China Galaxy vs. Lazard | China Galaxy vs. Moelis Co | China Galaxy vs. PJT Partners |
| Creek Road vs. Cryomass Technologies | Creek Road vs. Global Helium Corp | Creek Road vs. Optimi Health Corp | Creek Road vs. Draganfly |
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 Odds Of Bankruptcy module to get analysis of equity chance of financial distress in the next 2 years.
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