Correlation Between China Resources and MUENCHRUECKUNSADR
Can any of the company-specific risk be diversified away by investing in both China Resources and MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR 110, you can compare the effects of market volatilities on China Resources and MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Resources and MUENCHRUECKUNSADR.
Diversification Opportunities for China Resources and MUENCHRUECKUNSADR
-0.08 | Correlation Coefficient |
Good diversification
The 3 months correlation between China and MUENCHRUECKUNSADR is -0.08. Overlapping area represents the amount of risk that can be diversified away by holding China Resources Beer and MUENCHRUECKUNSADR 110 in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on MUENCHRUECKUNSADR 110 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 MUENCHRUECKUNSADR. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of MUENCHRUECKUNSADR 110 has no effect on the direction of China Resources i.e., China Resources and MUENCHRUECKUNSADR go up and down completely randomly.
Pair Corralation between China Resources and MUENCHRUECKUNSADR
Assuming the 90 days horizon China Resources Beer is expected to generate 1.13 times more return on investment than MUENCHRUECKUNSADR. However, China Resources is 1.13 times more volatile than MUENCHRUECKUNSADR 110. It trades about 0.13 of its potential returns per unit of risk. MUENCHRUECKUNSADR 110 is currently generating about 0.11 per unit of risk. If you would invest 298.00 in China Resources Beer on December 1, 2024 and sell it today you would earn a total of 20.00 from holding China Resources Beer or generate 6.71% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
China Resources Beer vs. MUENCHRUECKUNSADR 110
Performance |
| Timeline |
| China Resources Beer |
| MUENCHRUECKUNSADR 110 |
China Resources and MUENCHRUECKUNSADR Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with China Resources and MUENCHRUECKUNSADR
The main advantage of trading using opposite China Resources and MUENCHRUECKUNSADR positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Resources position performs unexpectedly, MUENCHRUECKUNSADR 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 MUENCHRUECKUNSADR will offset losses from the drop in MUENCHRUECKUNSADR's long position.| China Resources vs. PROSIEBENSAT1 MEDIADR4 | China Resources vs. Cairo Communication SpA | China Resources vs. Ribbon Communications | China Resources vs. Comba Telecom Systems |
| MUENCHRUECKUNSADR vs. SEKISUI CHEMICAL | MUENCHRUECKUNSADR vs. INDO RAMA SYNTHETIC | MUENCHRUECKUNSADR vs. China Foods Limited | MUENCHRUECKUNSADR vs. Sekisui Chemical Co |
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 Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.
Other Complementary Tools
| Money Flow Index Determine momentum by analyzing Money Flow Index and other technical indicators | |
| Money Managers Screen money managers from public funds and ETFs managed around the world | |
| Top Crypto Exchanges Search and analyze digital assets across top global cryptocurrency exchanges | |
| Portfolio Comparator Compare the composition, asset allocations and performance of any two portfolios in your account | |
| USA ETFs Find actively traded Exchange Traded Funds (ETF) in USA |