Correlation Between CK Infrastructure and CENTRAL PUERTO
Can any of the company-specific risk be diversified away by investing in both CK Infrastructure and CENTRAL PUERTO 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 CK Infrastructure and CENTRAL PUERTO into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Infrastructure Holdings and CENTRAL PUERTO ADR1, you can compare the effects of market volatilities on CK Infrastructure and CENTRAL PUERTO 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 CK Infrastructure with a short position of CENTRAL PUERTO. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Infrastructure and CENTRAL PUERTO.
Diversification Opportunities for CK Infrastructure and CENTRAL PUERTO
0.43 | Correlation Coefficient |
Very weak diversification
The 3 months correlation between CHH and CENTRAL is 0.43. Overlapping area represents the amount of risk that can be diversified away by holding CK Infrastructure Holdings and CENTRAL PUERTO ADR1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CENTRAL PUERTO ADR1 and CK Infrastructure 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 CK Infrastructure Holdings are associated (or correlated) with CENTRAL PUERTO. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CENTRAL PUERTO ADR1 has no effect on the direction of CK Infrastructure i.e., CK Infrastructure and CENTRAL PUERTO go up and down completely randomly.
Pair Corralation between CK Infrastructure and CENTRAL PUERTO
Assuming the 90 days horizon CK Infrastructure is expected to generate 13.74 times less return on investment than CENTRAL PUERTO. In addition to that, CK Infrastructure is 1.13 times more volatile than CENTRAL PUERTO ADR1. It trades about 0.02 of its total potential returns per unit of risk. CENTRAL PUERTO ADR1 is currently generating about 0.32 per unit of volatility. If you would invest 853.00 in CENTRAL PUERTO ADR1 on September 12, 2024 and sell it today you would earn a total of 527.00 from holding CENTRAL PUERTO ADR1 or generate 61.78% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Infrastructure Holdings vs. CENTRAL PUERTO ADR1
Performance |
| Timeline |
| CK Infrastructure |
| CENTRAL PUERTO ADR1 |
CK Infrastructure and CENTRAL PUERTO Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Infrastructure and CENTRAL PUERTO
The main advantage of trading using opposite CK Infrastructure and CENTRAL PUERTO positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Infrastructure position performs unexpectedly, CENTRAL PUERTO 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 CENTRAL PUERTO will offset losses from the drop in CENTRAL PUERTO's long position.| CK Infrastructure vs. INDO RAMA SYNTHETIC | CK Infrastructure vs. STMICROELECTRONICS | CK Infrastructure vs. Eastman Chemical | CK Infrastructure vs. Arrow Electronics |
| CENTRAL PUERTO vs. Chiba Bank | CENTRAL PUERTO vs. Hitachi Construction Machinery | CENTRAL PUERTO vs. Ameriprise Financial | CENTRAL PUERTO vs. HYDROFARM HLD GRP |
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 Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.
Other Complementary Tools
| Bond Analysis Evaluate and analyze corporate bonds as a potential investment for your portfolios. | |
| Premium Stories Follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope | |
| Price Ceiling Movement Calculate and plot Price Ceiling Movement for different equity instruments | |
| Bonds Directory Find actively traded corporate debentures issued by US companies | |
| Transaction History View history of all your transactions and understand their impact on performance |