Correlation Between CK Asset and China Overseas
Can any of the company-specific risk be diversified away by investing in both CK Asset and China Overseas 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 Asset and China Overseas into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CK Asset Holdings and China Overseas Land, you can compare the effects of market volatilities on CK Asset and China Overseas 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 Asset with a short position of China Overseas. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Asset and China Overseas.
Diversification Opportunities for CK Asset and China Overseas
-0.29 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHKGF and China is -0.29. Overlapping area represents the amount of risk that can be diversified away by holding CK Asset Holdings and China Overseas Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Overseas Land and CK Asset 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 Asset Holdings are associated (or correlated) with China Overseas. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Overseas Land has no effect on the direction of CK Asset i.e., CK Asset and China Overseas go up and down completely randomly.
Pair Corralation between CK Asset and China Overseas
Assuming the 90 days horizon CK Asset Holdings is expected to under-perform the China Overseas. But the pink sheet apears to be less risky and, when comparing its historical volatility, CK Asset Holdings is 1.0 times less risky than China Overseas. The pink sheet trades about -0.03 of its potential returns per unit of risk. The China Overseas Land is currently generating about 0.0 of returns per unit of risk over similar time horizon. If you would invest 1,022 in China Overseas Land on August 31, 2024 and sell it today you would lose (168.00) from holding China Overseas Land or give up 16.44% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 55.95% |
| Values | Daily Returns |
CK Asset Holdings vs. China Overseas Land
Performance |
| Timeline |
| CK Asset Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| China Overseas Land |
CK Asset and China Overseas Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Asset and China Overseas
The main advantage of trading using opposite CK Asset and China Overseas positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Asset position performs unexpectedly, China Overseas 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 China Overseas will offset losses from the drop in China Overseas' long position.| CK Asset vs. Hong Kong Land | CK Asset vs. Sino Land Co | CK Asset vs. CK Hutchison Holdings | CK Asset vs. CK Hutchison Holdings |
| China Overseas vs. HUMANA INC | China Overseas vs. SCOR PK | China Overseas vs. Aquagold International | China Overseas vs. Thrivent High Yield |
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 ETF Categories module to list of ETF categories grouped based on various criteria, such as the investment strategy or type of investments.
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