Correlation Between CK Infrastructure and SENERELECSPGDR REGS
Can any of the company-specific risk be diversified away by investing in both CK Infrastructure and SENERELECSPGDR REGS 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 SENERELECSPGDR REGS 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 SENERELECSPGDR REGS 1, you can compare the effects of market volatilities on CK Infrastructure and SENERELECSPGDR REGS 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 SENERELECSPGDR REGS. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Infrastructure and SENERELECSPGDR REGS.
Diversification Opportunities for CK Infrastructure and SENERELECSPGDR REGS
0.18 | Correlation Coefficient |
Average diversification
The 3 months correlation between CHH and SENERELECSPGDR is 0.18. Overlapping area represents the amount of risk that can be diversified away by holding CK Infrastructure Holdings and SENERELECSPGDR REGS 1 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SENERELECSPGDR REGS 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 SENERELECSPGDR REGS. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SENERELECSPGDR REGS has no effect on the direction of CK Infrastructure i.e., CK Infrastructure and SENERELECSPGDR REGS go up and down completely randomly.
Pair Corralation between CK Infrastructure and SENERELECSPGDR REGS
Assuming the 90 days horizon CK Infrastructure Holdings is expected to generate 0.84 times more return on investment than SENERELECSPGDR REGS. However, CK Infrastructure Holdings is 1.19 times less risky than SENERELECSPGDR REGS. It trades about -0.04 of its potential returns per unit of risk. SENERELECSPGDR REGS 1 is currently generating about -0.08 per unit of risk. If you would invest 641.00 in CK Infrastructure Holdings on September 13, 2024 and sell it today you would lose (14.00) from holding CK Infrastructure Holdings or give up 2.18% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CK Infrastructure Holdings vs. SENERELECSPGDR REGS 1
Performance |
| Timeline |
| CK Infrastructure |
| SENERELECSPGDR REGS |
CK Infrastructure and SENERELECSPGDR REGS Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Infrastructure and SENERELECSPGDR REGS
The main advantage of trading using opposite CK Infrastructure and SENERELECSPGDR REGS positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Infrastructure position performs unexpectedly, SENERELECSPGDR REGS 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 SENERELECSPGDR REGS will offset losses from the drop in SENERELECSPGDR REGS's long position.| CK Infrastructure vs. INSURANCE AUST GRP | CK Infrastructure vs. MSAD INSURANCE | CK Infrastructure vs. URBAN OUTFITTERS | CK Infrastructure vs. Singapore Reinsurance |
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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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