Correlation Between China Resources and CEOTRONICS (CEKSG)
Can any of the company-specific risk be diversified away by investing in both China Resources and CEOTRONICS (CEKSG) 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 Resources and CEOTRONICS (CEKSG) into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Resources Beer and CEOTRONICS, you can compare the effects of market volatilities on China Resources and CEOTRONICS (CEKSG) 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 Resources with a short position of CEOTRONICS (CEKSG). Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and CEOTRONICS (CEKSG).
Diversification Opportunities for China Resources and CEOTRONICS (CEKSG)
0.81 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between China and CEOTRONICS is 0.81. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and CEOTRONICS in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CEOTRONICS (CEKSG) and China Resources 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 Resources Beer are associated (or correlated) with CEOTRONICS (CEKSG). Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CEOTRONICS (CEKSG) has no effect on the direction of China Resources i.e., China Resources and CEOTRONICS (CEKSG) go up and down completely randomly.
Pair Corralation between China Resources and CEOTRONICS (CEKSG)
Assuming the 90 days horizon China Resources Beer is expected to under-perform the CEOTRONICS (CEKSG). In addition to that, China Resources is 1.53 times more volatile than CEOTRONICS. It trades about -0.17 of its total potential returns per unit of risk. CEOTRONICS is currently generating about -0.04 per unit of volatility. If you would invest 544.00 in CEOTRONICS on August 29, 2024 and sell it today you would lose (14.00) from holding CEOTRONICS or give up 2.57% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Beer vs. CEOTRONICS
Performance |
| Timeline |
| China Resources Beer |
| CEOTRONICS (CEKSG) |
China Resources and CEOTRONICS (CEKSG) Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and CEOTRONICS (CEKSG)
The main advantage of trading using opposite China Resources and CEOTRONICS (CEKSG) positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, CEOTRONICS (CEKSG) 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 CEOTRONICS (CEKSG) will offset losses from the drop in CEOTRONICS (CEKSG)'s long position.| China Resources vs. Diamyd Medical AB | China Resources vs. Monster Beverage Corp | China Resources vs. Dairy Farm International | China Resources vs. INDOFOOD AGRI RES |
| CEOTRONICS (CEKSG) vs. Apple Inc | CEOTRONICS (CEKSG) vs. Apple Inc | CEOTRONICS (CEKSG) vs. Microsoft | CEOTRONICS (CEKSG) vs. Microsoft |
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 Financial Widgets module to easily integrated Macroaxis content with over 30 different plug-and-play financial widgets.
Other Complementary Tools
| Equity Valuation Check real value of public entities based on technical and fundamental data | |
| Volatility Analysis Get historical volatility and risk analysis based on latest market data | |
| Investing Opportunities Build portfolios using our predefined set of ideas and optimize them against your investing preferences | |
| Portfolio Volatility Check portfolio volatility and analyze historical return density to properly model market risk | |
| Global Correlations Find global opportunities by holding instruments from different markets |