Correlation Between Chrysalis Investments and Standard Chartered
Can any of the company-specific risk be diversified away by investing in both Chrysalis Investments and Standard Chartered 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 Chrysalis Investments and Standard Chartered into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Chrysalis Investments and Standard Chartered PLC, you can compare the effects of market volatilities on Chrysalis Investments and Standard Chartered 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 Chrysalis Investments with a short position of Standard Chartered. Check out your portfolio center. Please also check ongoing floating volatility patterns of Chrysalis Investments and Standard Chartered.
Diversification Opportunities for Chrysalis Investments and Standard Chartered
0.66 | Correlation Coefficient |
Poor diversification
The 3 months correlation between Chrysalis and Standard is 0.66. Overlapping area represents the amount of risk that can be diversified away by holding Chrysalis Investments and Standard Chartered PLC in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Standard Chartered PLC and Chrysalis Investments 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 Chrysalis Investments are associated (or correlated) with Standard Chartered. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Standard Chartered PLC has no effect on the direction of Chrysalis Investments i.e., Chrysalis Investments and Standard Chartered go up and down completely randomly.
Pair Corralation between Chrysalis Investments and Standard Chartered
Assuming the 90 days trading horizon Chrysalis Investments is expected to generate 1.14 times more return on investment than Standard Chartered. However, Chrysalis Investments is 1.14 times more volatile than Standard Chartered PLC. It trades about 0.4 of its potential returns per unit of risk. Standard Chartered PLC is currently generating about 0.29 per unit of risk. If you would invest 8,530 in Chrysalis Investments on September 1, 2024 and sell it today you would earn a total of 1,100 from holding Chrysalis Investments or generate 12.9% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Chrysalis Investments vs. Standard Chartered PLC
Performance |
| Timeline |
| Chrysalis Investments |
| Standard Chartered PLC |
Chrysalis Investments and Standard Chartered Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Chrysalis Investments and Standard Chartered
The main advantage of trading using opposite Chrysalis Investments and Standard Chartered positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Chrysalis Investments position performs unexpectedly, Standard Chartered 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 Standard Chartered will offset losses from the drop in Standard Chartered's long position.| Chrysalis Investments vs. Alfa Financial Software | Chrysalis Investments vs. Gaming Realms plc | Chrysalis Investments vs. Air Products Chemicals | Chrysalis Investments vs. X FAB Silicon Foundries |
| Standard Chartered vs. MTI Wireless Edge | Standard Chartered vs. Aurora Investment Trust | Standard Chartered vs. Livermore Investments Group | Standard Chartered vs. New Residential Investment |
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 Equity Analysis module to research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities.
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