Correlation Between CK Asset and China Resources
Can any of the company-specific risk be diversified away by investing in both CK Asset and China Resources 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 Resources 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 Resources Land, you can compare the effects of market volatilities on CK Asset and China Resources 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 Resources. Check out your portfolio center. Please also check ongoing floating volatility patterns of CK Asset and China Resources.
Diversification Opportunities for CK Asset and China Resources
-0.48 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CHKGF and China is -0.48. Overlapping area represents the amount of risk that can be diversified away by holding CK Asset Holdings and China Resources Land in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on China Resources 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 Resources. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of China Resources Land has no effect on the direction of CK Asset i.e., CK Asset and China Resources go up and down completely randomly.
Pair Corralation between CK Asset and China Resources
If you would invest 357.00 in CK Asset Holdings on August 25, 2024 and sell it today you would earn a total of 0.00 from holding CK Asset Holdings or generate 0.0% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Very Weak |
| Accuracy | 4.55% |
| Values | Daily Returns |
CK Asset Holdings vs. China Resources Land
Performance |
| Timeline |
| CK Asset Holdings |
Risk-Adjusted Performance
0 of 100
Weak | Strong |
Solid
| China Resources Land |
CK Asset and China Resources Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CK Asset and China Resources
The main advantage of trading using opposite CK Asset and China Resources positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CK Asset position performs unexpectedly, China Resources 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 Resources will offset losses from the drop in China Resources' 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 Resources vs. China Overseas Land | China Resources vs. Country Garden Holdings | China Resources vs. Longfor Group Holdings | China Resources vs. Sun Hung Kai |
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 Headlines Timeline module to stay connected to all market stories and filter out noise. Drill down to analyze hype elasticity.
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