Correlation Between China Hongqiao and SP Global
Can any of the company-specific risk be diversified away by investing in both China Hongqiao and SP Global 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 Hongqiao and SP Global into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Hongqiao Group and SP Global, you can compare the effects of market volatilities on China Hongqiao and SP Global 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 Hongqiao with a short position of SP Global. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Hongqiao and SP Global.
Diversification Opportunities for China Hongqiao and SP Global
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and SPGI is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Hongqiao Group and SP Global in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on SP Global and China Hongqiao 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 Hongqiao Group are associated (or correlated) with SP Global. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of SP Global has no effect on the direction of China Hongqiao i.e., China Hongqiao and SP Global go up and down completely randomly.
Pair Corralation between China Hongqiao and SP Global
If you would invest 49,586 in SP Global on November 9, 2024 and sell it today you would earn a total of 2,320 from holding SP Global or generate 4.68% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Flat |
| Strength | Insignificant |
| Accuracy | 0.0% |
| Values | Daily Returns |
China Hongqiao Group vs. SP Global
Performance |
| Timeline |
| China Hongqiao Group |
Risk-Adjusted Performance
Very Weak
Weak | Strong |
| SP Global |
China Hongqiao and SP Global Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Hongqiao and SP Global
The main advantage of trading using opposite China Hongqiao and SP Global positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Hongqiao position performs unexpectedly, SP Global 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 SP Global will offset losses from the drop in SP Global's long position.| China Hongqiao vs. Constellium Nv | China Hongqiao vs. Century Aluminum | China Hongqiao vs. Alcoa Corp | China Hongqiao vs. China Hongqiao Group |
| SP Global vs. MSCI Inc | SP Global vs. Nasdaq Inc | SP Global vs. Intercontinental Exchange | SP Global vs. CME Group |
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 Content Syndication module to quickly integrate customizable finance content to your own investment portal.
Other Complementary Tools
| Portfolio Dashboard Portfolio dashboard that provides centralized access to all your investments | |
| Fundamentals Comparison Compare fundamentals across multiple equities to find investing opportunities | |
| Portfolio Suggestion Get suggestions outside of your existing asset allocation including your own model portfolios | |
| Balance Of Power Check stock momentum by analyzing Balance Of Power indicator and other technical ratios | |
| Portfolio Backtesting Avoid under-diversification and over-optimization by backtesting your portfolios |